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Posted by Katie Tam on May 31, 2007, 12:58 am
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I heard people say S-Corp taxes are diffrent from C-Corp
taxes? Can some one explain this more detail?
Katie Tam
Network Administrator
http://www.linkwaves.com/main.asp
http://www.linkwaves.com/
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Posted by Observer on June 1, 2007, 10:42 am
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> I heard people say S-Corp taxes are diffrent from C-Corp
> taxes? Can some one explain this more detail?
Dear Katie,
I heard people say that Mesh networks and and Star networks
are different topologies. Could you explain this in more
detail?
Regards,
Bill
P.S.
S-corporations generally pay no income taxes. Income taxes
are paid by the shareholders by each reporting his/her share
of the corporations profits on his/her own tax return.
Because they have already paid taxes on the S-corp's
profits, when the S-corp distributes those profits to the
shareholders they do NOT pay income taxes again.
C-corporations pay income tax on their profits. Then when
those profits are distributed as dividends, the shareholders
pay income taxes again.
Thus S-corp profits are taxes only once and C-corp profits
are taxed twice.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Rich Carreiro on June 1, 2007, 10:42 am
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> I heard people say S-Corp taxes are diffrent from C-Corp
> taxes? Can some one explain this more detail?
The primary difference is that an S-corp is a passthough but
a C-corp is its own tax entity.
With an S-corp, the net profit flows through to the
shareholders' tax returns and is taxed personally to them on
their returns (regardless of whether or not they get any
cash from the S-corp). The S-corp itself pays no taxes.
A C-corp is its own tax entity. It files it own return and
pays taxes on its net profit. Shareholders only pay taxes
on dividends paid out by the C-corp. However, the C-corp
gets no deduction for dividends paid, which means C-corp
dividends are double-taxed.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by John on June 1, 2007, 10:42 am
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> I heard people say S-Corp taxes are diffrent from C-Corp
> taxes? Can some one explain this more detail?
>
> Katie Tam
> Network Administratorhttp://www.linkwaves.com/main.asp
You heard correctly, there is a difference between S-corp
and C corp taxes. The differences in taxation also impact
other areas such as fringe benefits, liability issues, etc.
You could google "s-corp vs c corp" and get a information in
general but ... if you are considering changing to a
different business tax structure you should definitely talk
with a tax accountant about your particular situation.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by ed on June 3, 2007, 10:29 pm
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> I heard people say S-Corp taxes are diffrent from C-Corp
> taxes? Can some one explain this more detail?
Generally speaking: All profits of an S-corp are taxed at
the owners' (stockholders') tax brackets on their 1040s
whether distributed to them in cash or not. All profits of
a C Corp are taxed to the corporation at corporate tax
rates. If they are distributed they are taxed a second time
as dividends on the stockholders' 1040.
ed
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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