Question

What are C corporations strategies to avoid or reduce double taxation without being S Corp?

Answer 1

Answer : Strategies of C Corp. to avoid double taxation.

1.You can avoid double taxation, at least in part, by paying yourself a salary rather than taking dividends from the stock you hold in your corporation.

2.Your corporation must pay taxes on profits, and individuals must pay taxes on any dividends they receive – double taxation. However, if you don't pay dividends, you'll only pay tax on profits once.

3.As a business owner, you can take out a loan from corporate profits and that money isn't subject to any additional tax.

4.If you're married or have children, you can hire them to work at your business. As long as the rate you pay them is reasonable and you're following all applicable labor laws, you can use this strategy to avoid double taxation.

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