re: So a C corporation is taxed twice on profit?

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then the profits on dividends

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No such thing.

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We were told by the investing party to change it to a C corp. It was originally an S corp.

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Did you or your financial wizard partner ask him why he preferred a C corp?

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When you see how much corporations pay in taxes it is hard to buy into "they are not people" argument. Why should an entity that pays that much to the government not have a say in government?

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They just aren't, though. I mean, a religion isn't a person, either. Neither is a union.

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I mean, a religion isn't a person, either. Neither is a union.

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Neither of those pay income taxes....

If you meet the qualifications for an S-corporation you can make the election using Form 2553. If you can make the election within the first two months plus 15 days of the corporation's existence then you will have no worries about C corp issues. If not, then you can make the election during the by March 15, 2015 to have it be effective for the 2015 calendar year. Any C corp tax attributes should be insignificant.

Nor does citizens United

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Dividends are taxable income, baw.

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"baw"?? Seriously??

It's "income from dividends" not "income on dividends" which is what you wrote the second time.

I only rag you because you gave the OP such a hard time for not knowing financial 'stuff' and it's obvious you don't either.

Another farmer learning the realities of the real business world. They get such preferential treatment they are shocked to see real world cost of business. They don't pay sales taxes on machinery assets in many states. They can report taxes on a cash basis. They have property tax caps. They have exemptions from certain labor laws and different insurance requirements for farm trucks etc.

Good guys but naive to the "regular" business world.

There are advantages of C corps to investors that may wish to sell their interests and that is why you sometimes see venture capital investors demand a C corp structure.

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That's exactly what this is. I was told when I asked why C corp it was easier to grow if we were a C corp and kept open the option to go public and easier to sell shares off. There are larger plans down the road, not going into much detail on here though.

Oh, and you forgot we don't have to pay state sales tax on fuel or electricity eithe

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Right.

Wait to you experience a big profit and have to have cash to pay taxes but all your profit is in equipment or receivables or something and you have to raise cash to pay taxes.

One of the biggest thing republicans and Obama could do now to help the economy is to allow domestic corporations to write their capital expenditures off like a cash basis farmer does. Over the long run it would be tax neutral but it would help business keep cash in their business while they are growing and investing.

(one reason the investor wants a C is that he can sell his stock and only incur tax on the gain of his stock sale and not have to pay taxes on the income of the corporation)

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I just set up a C corp and am about to receive a 2mil investment to get it going. Needed to do a tax filing...I didn't realize with a C corp they tax the profit of the corporation, and then tax the dividends distributed to shareholders.

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White people's problems