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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 765 |
Essay's paper body
I didn't want my business to be taxed in addition to the personal taxes I have to pay on its income.
The S-Corporation’s special tax status eliminates the possibility of double taxation on profits, and S-Corporation shareholders do not have to pay self-employment taxes (Medicare and Social Security)...
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With S-Corporations, a corporate income tax return is filed but no tax is paid at the entity level. The profits or losses of the corporation are “flowed-through†to the corporation owner’s personal income tax.1 This way, I can offset most of my expenses and losses against my personal income (by claiming a deduction at my personal marginal tax rate)...
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