Posts Tagged tax trap
Small Business Taxes — How to Avoid the Dreaded Double Taxation of Business Profit
The advantages are incorporating your small business are many.
For starters, you’ll be protecting yourself and your family from the possibility of a business ending lawsuit. Forming a corporation is Step One on the path known as “Asset Protection” — you are moving from the world of unlimited liability to the world of limited liability.
From a tax standpoint, there are both advantages and disadvantages to incorporating. Yes, forming a corporation can either reduce your taxes or increase your taxes, depending on what type of corporation you create.
Tags: c corporations, double taxation, forming a corporation, income tax return, personal income tax, s corporations, small business taxes, sole proprietorship, tax trap, types of corporationsRelated posts