LISA P. GONZALEZ, CPA, PLLC Certified Public Accountant Certified Tax Coach
LISA P. GONZALEZ, CPA, PLLCCertified Public AccountantCertified Tax Coach   

Benefits of Incorporating Your Business

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:

  • Corporations can pay Shareholders (S/H) as an employee and deduct full salary paid plus ½ of payroll taxes paid


  • Corporations can rent a home office from its employees and deduct rent as an expense. Employees then deduct their home office expenses against passive income received.      


  • Corporations can deduct car allowances paid to employees


  • Corporations can deduct amounts paid to employees for achievement awards, up to $400 per year


  • Corporations can deduct dependent care expenses paid for employee’s dependents, up to $5,000 per year


  • Corporations can deduct insurance paid on behalf of employees against corporate profits


  • Corporations can hire employee’s children & pay their educational expenses, up to $5,250 per year


  • Corporations can deduct amounts paid into a retirement plan for employees and create deferred income for employee contributions


  • Corporations pay a lower tax rate than any other entity:


           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

Suite C224

Houston, TX 77058


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