You are a shareholder in a S Corporation. The corporation earns $2 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 40%, and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid?© BrainMass Inc. brainmass.com October 10, 2019, 2:43 am ad1c9bdddf
A S corproation is treated as a partnership for taxation. No tax would be paid on the income of ...
The solution discusses how much is left after all taxes are paid.