C Corporation

All corporations are formed as C Corporations with the state. Forming a corporation helps to protect your personal assets from anyone who may seek to proceed after your corporate assets.

C Corporations pay tax at the following rates:

Taxable Income Rate
$0 - $50,000 15%
$50,000 - $75,000 25%
$75,000 - $100,000 34%
$100,000 - $335,000 39%
$335,000 - $10,000,000 34%
More than $10,000,000 35-38%

The dividends you take out of your C Corporation are taxed at your individual tax rate. Under current law, qualified dividends are taxed at 15%. So you are paying taxes on your income twice. Once at the corporate level and then again at the individual level.

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