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income is taxed at the corporate level

 
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PostPosted: Mon 8:40, 08 Jul 2013    Post subject: income is taxed at the corporate level

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In addition to federal income tax, most states impose a corporate income tax as well, so this should be factored in when considering the costs associated with forming a corporation. Another factor to consider is the dreaded taxation associated with corporations; income is taxed at the corporate level, and then taxed again at your individual income tax rate if/when that income is paid to you in the form of a shareholder dividend. Of course, many corporation owners avoid double taxation by simply receiving compensation in the form of a salary only and foregoing any shareholder dividend payments..Related Articles:


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