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Revision as of 00:33, 10 September 2026
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Hence the term double-taxation. An S Corp however works differently. The S Corp pays no tax on profits. The net income flows by means of the shareholders who then pay tax on that money. The big difference yet another excellent that the 15.3% self-employment tax does not apply. So, by forming an S Corporation, company saves $3,060 for cibai 2010 on income of $20,000. The income tax still applies, but Major someone is supposed to pay $1,099 than $4,159.
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