Question
Since Joe is new to Corporate tax he does not know the tax rate structure for corporations or how he is supposed to pay it.
Since Joe is new to Corporate tax he does not know the tax rate structure for corporations or how he is supposed to pay it. He is use to employer withholdings and paying in each year for his sole proprietorship.
Tell Joe, which of the following accurately describes the corporate tax rate structure.
a.Progressive, higher rate as income is higher
b.Proportional, similar to individual tax rate structure
c.Proportional, flat rate
d.Regressive, smaller corporations pay more and larger corporations pay less
e.None of the above are correct
Which of the following best describes for Joe what Be You Sailing corp. will do to pay applicable federal income taxes.
a.Make estimated tax payments every quarter
b.File the tax return and pay taxes by the due date
c.Send in tax payments every month
d.Corporations are a flow through entity, so the shareholder pays taxes on business through their individual tax return requirements not the corporation.
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