A Corporation is a separate legal entity, which files its own income tax return, pays its own income taxes, continues its business even after the death of the owner, and provides liability protection to Shareholders (the owners). There are also many tax benefits available to Corporations, which are not available to Individual Sole Proprietorships and General Partnerships.
Some Benefits available to Corporations:
The first $50,000 of profit is taxed at 15%
The next $50K to $75K is taxed at 25%
The next $75K to $100K is taxed at 34%
Corporations pay no self-employment tax.
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Lisa P. Gonzalez, CPA, PLLC
1322 Space Park Dr
Houston, TX 77058