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Off topic: It would be good to have C-Corp and be taxable at both corporate and individual levels because companies pay a flat tax while individuals are tiered.
by AussieOdyssey 10y ago
Off topic: It would be good to have C-Corp and be taxable at both corporate and individual levels because companies pay a flat tax while individuals are tiered. This way we can choose our salary and leave the rest in company.
This however severely complicates cases like mine which has three pass-thru contracts
- brudgers 10y agoIn the US, there is a cap on the wages to which social security tax applies. That tax amounts to approximately 15.5% of gross salary when the company portion and the individual portion are combined, the effective tax rate for an individual is much less progressive than portrayed in popular political opinion. It is also the case that control of a C-corp offers much less personal liquidity than is possible with an LLC. In addition, the layer of complexity for a C-Corp is likely to require more meaningful (from an individual perspective) expenses on legal and accounting services. All things being equal, it makes sense to optimize on taxes. Most of the time, all things aren't equal.