Learning Center
Everything you need to know about Corporations, LLCs and Trademarks.
Learning center
Everything you need to know about Corporations, LLCs and Trademarks.
« All Topics
In-Depth Incorporation FAQ
What is double-tax and how do I avoid paying it?
« What is the difference between an S-Corporation and a C-Corporation? What is a Resident Agent and do I need one to incorporate? »
The major disadvantage of a C-Corporation is that it is subject to "double-taxation." It is called "double-taxation" because a C-Corporation's profits are taxed at the corporate level, and then again at the individual level when the profits are paid out to the owners.
Neither the S-Corporation nor the LLC is subject to the double tax. The S-Corporation and the LLC do not pay tax at the corporate level. Taxes will only be paid by the individual owners of the company when distributions are made.
Neither the S-Corporation nor the LLC is subject to the double tax. The S-Corporation and the LLC do not pay tax at the corporate level. Taxes will only be paid by the individual owners of the company when distributions are made.
