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Latest revision as of 13:36, 10 September 2026
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A C Corp pays tax in relation to its profit for all seasons and then any dividends paid to shareholders one more taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The money flows through to the shareholders who then pay tax on that money. The big difference here i will discuss that the 15.3% self-employment tax doesn't apply. So, kontol by forming an S Corporation, your small saves $3,060 for the year just passed on transfer pricing revenue of $20,000.
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