Hello guys just incorporate a private limited company for a small business If let say I am not earning anything significant do I still have to pay for tax? and let say my company earn 3k per month than do I have to pay double tax if I took the 3k as a personal profit
err, put as your salary?
"Incorporating a business gives you an additional layer of protection against liabilities and debts resulting from your business operations. It also gives you an additional layer of taxes. You will pay taxes on the profits that your business earns. Any salary the business pays you or any distributions you take from the business are subject to personal income tax as well. If you can meet the qualifications, you might have your corporation treated as an S corporation by the IRS. If approved, the IRS will not require you to pay the corporate income tax, treating your business income as personal income and taxing it at the personal income level."
So base on the quote above I have to pay tax for my business profit and any salary I give myself also subjected to personal tax. Therefore it mean I have to pay tax twice if I own the company. Can anyone verify this
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