Less Taxes?

Corporations are taxed at a lower rate than individuals. So if you incorporate, you pay less taxes, right? Wrong. Once you pay yourself any money, it becomes an expense of the business and income to you. You pay at your own individual tax rate. So if you keep some of the profits in the business account, then you only pay corporate rates on it, right? Wrong again. The government figured this one out already. If you are one of the following professions, your corporation is taxed at the individual rates:


	Less Taxes? Corporations are taxed at a lower rate than individuals. So if you incorporate, you pay less taxes, right? Wrong. Once you pay yourself any money, it becomes an expense of the business and income to you. You pay at your own individual tax rate. So if you keep some of the profits in the business account, then you only pay corporate rates on it, right? Wrong again. The government figured this one out already. If you are one of the following professions, your corporation is taxed at the individual rates: Engineering Health Architecture Accounting Actuarial Science Consulting NO!

Less Taxes?

NO!