C - Corporation
A C - Corporation is a corporation that, as per the Federal income tax law, is taxed at both corporate and personal levels. The owners or shareholders are taxed separately from the business entity.
- The C - Corporation pays federal, state, and local taxes.
- The dividend to shareholders is taxed.
Our experience in handling accounting and tax preparation for C - Corporations enables us to file consistent and accurate reports.
Taking Money from C Corp
To extract money out of your C - Corporation can involve heavy taxes; we enable you to achieve maximum savings per dollar.
- Get business funds out to family members at a lower tax.
- Business expenditures aligned to benefit the owner.
There are many more methods unique to your area and business scope, which we help.
Compensation of Key Employees
Careful planning of the compensation package of key employees in an organization acts as an incentive to retain and develop talent. Various combinations of salary components allow achieving this.
- Your basic salary is essential.
- Special plans on incentive-based compensation.
- Employee stock ownership, stock bonuses, and stock options.
Next Level Tax enables you to tailor compensation packages according to your organization's unique requirements.
A C - Corporation earning is double taxed, first at the company level and second at the dividend level on your income. Proper planning over time enables you to conserve your earnings at a company level legally, allowing you to maximize your compensation.
Personal Service Corporation
A personal service corporation provides for personal services in healthcare, law, engineering, architecture, accounting, performing arts, or consulting services.
- A personal service corporation is subject to special tax rules.
- It is owned by employees, retired employees, or their estates.
- If dividends are not paid, the earnings are retained.
- The IRS can reallocate incomes and deductions between the corporation and its shareholders.
Despite the risks, there are many advantages. Careful tax planning, combined with our in-depth knowledge of the rules, allows us to maximize your C - Corporation taxes.