Question
You friend from high school has what she describes as a real business I have my own Corporation which provides lawn care services to several
You friend from high school has what she describes as a real business I have my own Corporation which provides lawn care services to several businesses in the Upstate. She has operated the business for two years, but has been confused by the discussion of Double Taxation that her bookkeeper mentions all the time. If her business generates $80,000 of net income (after expenses) and she uses all that available income personally, prepare a brief analysis so that she can understand how the income is double taxed. Assume a corporate tax rate of 21% and an individual income tax rate of 15%.
Continuing with Question 3 above, could your friend avoid double taxation by electing to be taxed as a S corporation? Is this desirable? What are the pros and cons for her to consider in this evaluation? Explain your answer.
This is the question i need answered ^
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