Financial PlanningSmall Business

Avoid C corporations with high tax rates

U.S. corporate income tax rates are the highest in the world. Most incorporated businesses pay 35% before their owners ever see a dollar of return on investment. The morale of the story for small business owners: consider using a regular corporate form (called a “C corporation”) for other planning business purposes but tax strategy is usually not one of the advantages.

Another type of corporation called an “S corporation” is not subject to these same tax rates and may offer other tax planning options.

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