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Message
So a C corporation is taxed twice on profit?
Posted on 11/10/14 at 4:55 pm
Posted on 11/10/14 at 4:55 pm
I never knew this. 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.
Seriously frick the Government. You're talking about taxing double..they'll end up getting over half of our profit when it's all set and done.
Seriously frick the Government. You're talking about taxing double..they'll end up getting over half of our profit when it's all set and done.
12
Posted on 11/10/14 at 4:56 pm to deltaland
Corporate taxes are paid, then the profits on dividends are taxed as income, if I remember right.
Posted on 11/10/14 at 4:56 pm to deltaland
How did you get a 2mill investment and not know this?
Posted on 11/10/14 at 4:57 pm to fontell
quote:
How did you get a 2mill investment and not know this?
Posted on 11/10/14 at 4:57 pm to fontell
quote:I'm pretty sure he's making shite up anyway.
How did you get a 2mill investment and not know this?
If someone tells you a number on the internet, reduce it by 66% and you're more likely to be on the right track.
Posted on 11/10/14 at 4:59 pm to fontell
quote:
How did you get a 2mill investment and not know this?
Posted on 11/10/14 at 4:59 pm to deltaland
quote:
I never knew this. 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.
Pretty basic stuff, very common knowledge. That's why people set up LLC's, S Corps or LPs. The idea is that the C Corp as an entity is taxed on its income. Then when it distributes to its shareholders that is income to them individually and they're taxed. Next time consult with an attorney or accountant before setting up your entity.
Posted on 11/10/14 at 4:59 pm to deltaland
quote:
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.
But, Warren Buffett's secretary!!!!!
Posted on 11/10/14 at 5:00 pm to fontell
quote:
How did you get a 2mill investment and not know this?
I'm the one experienced in the industry and will be running the operation. My business partner handles the tax filings and financial stuff because he is experienced in it.
Posted on 11/10/14 at 5:01 pm to deltaland
quote:lol ur fuked
My business partner handles the tax filings and financial stuff because he is experienced in it.
Posted on 11/10/14 at 5:02 pm to deltaland
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?
Posted on 11/10/14 at 5:03 pm to deltaland
quote:
My business partner handles the tax filings and financial stuff because he is experienced in it.
All evidence to the contrary
Posted on 11/10/14 at 5:03 pm to cwill
quote:
The idea is that the C Corp as an entity is taxed on its income. Then when it distributes to its shareholders that is income to them individually and they're taxed. Next time consult with an attorney or accountant before setting up your entity.
We were told by the investing party to change it to a C corp. It was originally an S corp.
Posted on 11/10/14 at 5:05 pm to deltaland
quote:
We were told by the investing party to change it to a C corp. It was originally an S corp.
Posted on 11/10/14 at 5:06 pm to deltaland
quote:You need a partner for tax filings and "financial stuff"? Hire an accountant for a few grand a year instead.
I'm the one experienced in the industry and will be running the operation. My business partner handles the tax filings and financial stuff because he is experienced in it.
Posted on 11/10/14 at 5:06 pm to FT
quote:
lol ur fuked
How so? He knew this already and had it handled, I just didn't know it. I've never dealt with corporate taxes
Posted on 11/10/14 at 5:07 pm to fontell
quote:
How did you get a 2mill investment and not know this?
Cut him some slack, he is only 23 years old.
Posted on 11/10/14 at 5:07 pm to lsu13lsu
quote:Cause it's probably made up anyway, and he wanted to come here as a disgruntled business owner when this is basically all his fault.
Why is this funny?
Posted on 11/10/14 at 5:10 pm to deltaland
quote:
We were told by the investing party to change it to a C corp. It was originally an S corp.
If it's not going to be a public company - 90% of the time, LLC is a better way to go. A corporation can always be formed later and the assets transferred if you want those advantages, but I see little advantages for a closely held company operating at either a C or an S, over an LLC. Caveat: there are issues regarding financing, issues of classes, taxation and other issues that may come into play - my experience on the corporate structure is mainly from the legal side and focused on basic formation and day-to-day operation. Every situation is different and you are always better off with a variety of competent professional advice from multiple practitioners in the area - specific to your situation, rather than loose, off-the-cuff talk on a message board.
Having said that - yes U.S. corporations are doubly taxed - one of the main discriminators between corporations and partnerships/LLCs is this concept of "flow through" taxation available with partnerships (traditional and LLPs) and LLCs unavailable to most corporate entities.
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