Katie Tam <katie...[at]gmail.com> wrote:

- quote -

Generally speaking: All profits of an S-corp are taxed at
the owners' (stockholders') tax brackets on their 1040s
whether distributed to them in cash or not. All profits of
a C Corp are taxed to the corporation at corporate tax
rates. If they are distributed they are taxed a second time
as dividends on the stockholders' 1040.

ed

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Katie Tam <katie...[at]gmail.com> wrote:

- quote -

You heard correctly, there is a difference between S-corp
and C corp taxes. The differences in taxation also impact
other areas such as fringe benefits, liability issues, etc.
You could google "s-corp vs c corp" and get a information in
general but ... if you are considering changing to a
different business tax structure you should definitely talk
with a tax accountant about your particular situation.

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Katie Tam <katietam[at]gmail.com> writes:

- quote -

The primary difference is that an S-corp is a passthough but
a C-corp is its own tax entity.

With an S-corp, the net profit flows through to the
shareholders' tax returns and is taxed personally to them on
their returns (regardless of whether or not they get any
cash from the S-corp). The S-corp itself pays no taxes.

A C-corp is its own tax entity. It files it own return and
pays taxes on its net profit. Shareholders only pay taxes
on dividends paid out by the C-corp. However, the C-corp
gets no deduction for dividends paid, which means C-corp
dividends are double-taxed.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Katie Tam <katie...[at]gmail.com> wrote:

- quote -

Dear Katie,

I heard people say that Mesh networks and and Star networks
are different topologies. Could you explain this in more
detail?

Regards,
Bill

P.S.
S-corporations generally pay no income taxes. Income taxes
are paid by the shareholders by each reporting his/her share
of the corporations profits on his/her own tax return.
Because they have already paid taxes on the S-corp's
profits, when the S-corp distributes those profits to the
shareholders they do NOT pay income taxes again.

C-corporations pay income tax on their profits. Then when
those profits are distributed as dividends, the shareholders
pay income taxes again.

Thus S-corp profits are taxes only once and C-corp profits
are taxed twice.

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I heard people say S-Corp taxes are diffrent from C-Corp
taxes? Can some one explain this more detail?

Katie Tam
Network Administrator
http://www.linkwaves.com/main.asp
http://www.linkwaves.com/

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