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Posts tagged: small business

Why Worry About Corporate Tax Structure

Last month I pointed out that there are significant disadvantages to forming what is called a C Corporation.  That’s what most of us think of as a regular corporation, a corporation that files tax returns for its own income and losses and pays taxes at a corporate rate, not an individual rate. Read more >>

Mouse in a Barrel

Like many lawyers I often suggest that clients with a small business, such as a motorsports dealership, incorporate. However, if you incorporate and do not make a special election to be taxed as an S Corporation (where the shareholders pay the taxes on corporate profits) your corporation will be a separate taxpayer known as a C Corporation. A commentator on tax law once compared forming a C Corporation to a mouse jumping into a barrel: easy to get into and hard to get out of. Read more >>

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