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Version actuelle datée du 8 janvier 2025 à 16:56

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Getting for you to the decision of which legal entity to choose, let's take each one separately. The most widespread form of legal entity is the organization. There are two basic forms, C Corp and S Corp. A C Corp pays tax as per its profit for the majority and then any dividends paid to shareholders can also taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The net income flows through which the shareholders who then pay tax on that money. The big difference let me reveal that the 15.3% self-employment tax doesn't apply. So, by forming an S Corporation, your small saves $3,060 for all seasons on a fortune of $20,000. The taxes still applies, but I'm sure someone love to pay $1,099 than $4,159. That is a big savings.

And since you know some taxpayer rights, could certainly start cutting your taxes by downloading a free of charge tax organizer for individuals and businesses here.

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