What is the difference between an LLC and a regular Corporations Management?
An LLC is managed by one or more of its members, the Corporation is managed by Officers appointed by the Board of Directors Q How is a C-Corporation Double Taxed? A A C-Corp is taxed on its income as though it was an individual then taxed again when it disperses dividends and paychecks. If you live in a state that has state income tax, that double tax could turn into quadruple taxation. Remember that Florida does not have state income, corporate, franchise, or shares taxes. Some of the corporate level income can be offset by deductions, lowering that part of the tax burden. Q How does a S-Corp avoid the double tax? A The S-Corp spreads the taxes to the shareholders on dividend dispersion and through payroll. If there is no dividend dispersion, no tax is paid on the moneys held by the Corporation.
