Most corporations are formed as C Corporations, as it is the most basic corporation. Founding a C Corporation sets the company up as a separate entity from its owners — and therefore is taxed separately from those who own it. C Corporations file using IRS Form 1120 annually — on or before March 15th.
Unfortunately, the setup of the C Corporation means that all revenue is taxed on two levels: the corporate level and individual level. The company pays taxes on its revenue, and shareholders also pay taxes on their dividends. However, not everything is double taxed. For example, if a shareholder is an active participant in the business, they are not required to pay the Medicare surtax. Our team of tax professionals can help you decipher the complicated tax law, helping you receive the biggest return possible.
Every C Corp falls into one of 9 tiers of the tax rate schedule as given by IRS publication 542. They are as follows:
|Taxable Income ($)||Tax Rate||Of amount over|
|Over||But not over|
|50,000||75,000||$7,500 + 25%||50,000|
|75,000||100,000||13,750 + 34%||75,000|
|100,000||335,000||22,250 + 39%||100,000|
|335,000||10,000,000||113,900 + 34%||335,000|
|10,000,000||15,000,000||3,400,000 + 35%||10,000,000|
|15,000,000||18,333,333||5,150,000 + 38%||15,000,000|
We offer two additional services at no cost to you. The first is a two year review for new clients. We take a look at the last two years of tax returns to see if you have missed any deductions or credits. If we find anything, we will amend those returns so that you can get a refund. The second service we offer is free audit support. If for any reason your return is audited, we provide counseling and support to help you reach the best solution.