Nevada corporate headquarters presents your small business tax tip. - The profit of a corporation is taxed to the corporation when earned, and that is taxed to shareholders when distributed as dividends. - This creates a double tax. - The corporation does not get a tax deduction when it distributes dividends to shareholders. - Shareholders who provide services through the corporation are employees and pay federal income tax, Social Security tax, and Medicare tax on their salary. - The post-tax net income of the corporation can be distributed in the form of dividends, which is taxed to the shareholders. - Shareholders receive income from the corporation either in the form of salary or in the form of dividends. - Losses can offset taxable income of the C corporation by being carried back or carried forward to other tax years. - For more information on small business taxes, contact a Nevada corporate headquarters representative at 1-800-581-729.
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Video instructions and help with filling out and completing When Form 1120 C Offset
