Posted by Michael A. Bardelli on March 14, 2002 at 24:58:30:
Mr. Hyre,
Thank you for your quick response. The S corporation offers the start up business owner with so much more than the C corp. That is what we will choose. Thank you again for taking your valuable time to answer my question.
Respectfully,
Michael A. Bardelli
Corporate taxation question for Mr. Hyre - Posted by Michael A. Bardelli
Posted by Michael A. Bardelli on March 13, 2002 at 16:33:16:
Mr. Hyre,
I currently trying to decided between an S corporation or a c corporation. My question is: (using the assumed numbers below)
After expense profit: 10,000$
With an S corporation, with its pass through taxation, can I take the above mentioned money as salary and pay no additional taxes since it passes through to my personal tax return anyway or are there additional taxes that I must pay (FICA, etc.) I am only asking at the federal level as I am aware of the state taxes charged. Thank you for your response.
Sincerely,
Michael A. Bardelli
Re: Corporate taxation question for Mr. Hyre - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 13, 2002 at 16:53:39:
With S, passes straight through, no FICA. With C, no pass through, pay double tax or go through contortions to avoid double tax. With salary of any sort, pass through AND pay FICA.
John Hyre