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.

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