What is a Double Taxation?

 What is a Double Taxation?

 

Double Taxation is a term often used to describe how corporations are taxed. With a Corporation, profits are taxed first at the corporate level and again when dividends are paid to shareholders on their personal tax returns.

There are strategies for minimizing or avoiding double taxation altogether. If you are a small business or start-up, you may consider forming an LLC or an S Corporation since the company itself is not taxed, but rather profit or loss can be passed through directly to the owners or shareholders.

Form a Corporation