4 ms·
>issue a dividend (and pay both corporate taxes /and/ capital gains taxes This is only true if you're a C-corp. I know on HN most folks are creating a C-corp b
by SomeCallMeTim 15y ago
>issue a dividend (and pay both corporate taxes /and/ capital gains taxes
This is only true if you're a C-corp. I know on HN most folks are creating a C-corp because it's easier to invest in, but if you're doing a small business, a partnership, S-corp, or LLC filing as an S-corp are likely the best options for you.
In all three of the latter cases, taking money out only causes you to be taxed once.
- lsc 15y agoright, I'm an S corp. you get taxed once, but you pay the income tax rate, as if it were salary or bonus, so you still end up paying well north of twice the capital gains rate.