4 ms·
I don't think you know what you are talking about. I am a CPA and there isn't any larger overhead expenses for one owner C-Corps vs. S-Corps. The main differe
by sfbrando 16y ago
I don't think you know what you are talking about. I am a CPA and there isn't any larger overhead expenses for one owner C-Corps vs. S-Corps. The main difference is that owners/employees of C-Corps usually just take money out by way of wages only. If they also take dividends they have to pay income tax on the dividends on their personal return, but get no deduction on their corporate income tax return. Thus "double taxation" is the result. S-Corps make it simpler to take distributions and make more sense and are more fair and equitable. Most S-Corps take money out in wages and shareholder distributions. The wages need to be reasonable and the shareholder distributions are a distribution of profit of which you pay income tax on, but there is no double taxation since the income flows through to your personal tax return anyway. I don't know what you mean about small number of people at the top of the company get to exempt half their income from taxes that virtually everyone else in the country has to pay. Our income is not exempt in any way. You might want to know your facts before spouting off stuff you don't know.