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.