S Corp? C Corp? Whats the difference?

Well, the biggest difference is that a C corporations's income can be potentially taxed twice, once on the corporation its self and once again on the owners of the company if the income is distributed through dividends. on the other hand an S corporation's income is not generally taxed on the federal level. what happens in an s Corporations case is that the income, losses and etc are funneled through the shareholders and reported by them instead. here is a nice little image explaining it.

#consulting #Taxes #ccorp #scorp #corp

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