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Versione attuale delle 07:26, 5 set 2026

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Getting in order to the decision of which legal entity to choose, let's take each one separately. The commonest form of legal entity is this manufacturer. There are two basic forms, C Corp and S Corp. A C Corp pays tax according to its profit for the majority and then any dividends paid to shareholders is also taxed. Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits.

The net income flows to the shareholders who then pay tax on that money. The big difference extra that the 15.3% self-employment tax doesn't apply.