What are the pros and cons of a S corporation vs. a C corporation.© BrainMass Inc. brainmass.com June 3, 2020, 8:39 pm ad1c9bdddf
S corporation vs. C corporation, pros and cons of each-
1. Tax Brackets-
With an S corporation, all of the corporation's income flows right onto the personal (1040) returns of the shareholders, pushing them up into higher tax brackets. A C corporation has its own progressive tax rate structure, ranging from 15% on the first $50,000 of net income, to as much as 39%.
2. Income Taxed-
With an S corporation, the shareholders are required to pay income tax on their share of the corporation's income whether they take any money out of the corporate account or not.
The Section 179 expensing election is much more lucrative for owners of C corporations because they can literally multiply their total ...
This posting analyses the pros and cons of an S corporation vs. a C corporation.