3 Pieces Of Taxes For Online Businesses: Difference between revisions

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Revision as of 03:23, 13 September 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 net income flows to the shareholders who then pay tax on cash. The big difference discover that the 15.3% self-employment tax does not apply. So, by forming an S Corporation, company saves $3,060 for transfer pricing 2011 on revenue of $20,000. The taxes still applies, but Major someone opt to pay $1,099 than $4,159. That are a wide savings.

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