What is the major tax advantage of the corporate form of organization?© BrainMass Inc. brainmass.com May 20, 2020, 10:14 pm ad1c9bdddf
The main advantage from a tax standpoint to a corporation deals with "S" corporation status. Any corporation can elect "S" corporation status and by doing so, pay less in taxes. First of all, the corporation is able to deduct employment taxes (FICA and Medicare) from wages paid to shareholders, as long as those shareholders are also officers of the corporation. This creates an automatic ...
This solution explains the major tax advantage of the corporate form of organization. A thorough discussion is provided.