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S Spring
S Spring
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An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will represent a double taxation of income.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will represent a double taxation of income.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

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S Spring
S Spring
  • 3.6k
  • 1
  • 7
  • 6

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will result inrepresent a double taxation of income.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will result in a double taxation.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will represent a double taxation of income.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.

Source Link
S Spring
S Spring
  • 3.6k
  • 1
  • 7
  • 6

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

But the salary itself will result in a double taxation.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.