Tax Rates Reflect Standard Of Living: Difference between revisions
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Revision as of 06:33, 8 October 2026
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Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The profit flows by way of the shareholders who then pay tax on cash. The big difference here is that the 15.3% self-employment tax doesn't apply. So, by forming an S Corporation, your business saves $3,060 for transfer pricing 2011 on money of $20,000. The taxes still applies, but I'm sure someone like better to pay $1,099 than $4,159. That is a big savings. This provides a combined total of $110,901, our itemized deductions of $19,349 and exemptions of $14,600 stay the same, giving us a complete taxable income of $76,952.
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