Will I pay more taxes if I register my business as a corporation?

Asked 2 years ago

I just started the process of opening a small business, and I am finally going to execute my plans and bring it to life. I need to decide whether to form a corporation or a limited liability company (LLC), and I don't know which will best suit my business needs, so I'm comparing a few options. What are the taxation costs?

Jovani Berry

Wednesday, September 07, 2022

A corporation's profits are taxed at the corporate tax rate, and any dividends paid to shareholders are reported on the shareholder's personal tax return. Your LLC's income and expenses are passed through and reported on your personal income tax return. These profits (or losses) are taxed at your personal tax rate.





Write an answer...

Cancel

Please follow our  Community Guidelines

Can't find what you're looking for?

The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site. Our website contains links to product that might contain affiliate links which may reward a commission when you purchased via our links. Our goal is to compare and review the products and services we write about in the best way to help our users. We might not review and feature every product/service in the market.Our service is free of charge. We might make affiliate commissions when you make a purchase via our links. This may influence if and the order of services and/or products that we review.

TrustedBrandReviews and its affiliates do not provide private investigator services or consumer reports, and are not consumer reporting agencies per the Fair Credit Reporting Act (FCRA). You may not use our site or services or the information provided to make decisions about employment, admission, consumer credit, insurance, tenant screening or any other purpose that would require FCRA compliance.