Will I be double taxed if I register my business as a corporation?
Asked a year ago
I want to register my company as a corporation, but I am not sure how this will work out for me if, as the owner, I will be working for the corporation. Would I then be subjected to double taxation when I report my income? Is this any different than with an LLC?
Wednesday, September 14, 2022
Corporations are subject to a corporate tax on the business's profits. Double taxation comes when you report the dividends you receive from the corporation on your personal income tax return. In an LLC, the profits are passed to you, as the owner, to report on your personal tax return, meaning you would not be subject to double taxation.
Please follow our Community Guidelines