Search Help

Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
September 2013

Word Count:



Escape the Lobster Trap of Corporate Tax

Corporate taxation has been famously compared to a lobster trap: “easy to enter… and painful to get out of.”1


Are you in the C corporation lobster trap?


Are you looking to get out of that C corporation and operate as a proprietorship?


Converting your C corporation into a sole proprietorship can be costly. Why? Because tax law makes you pay tax both as a corporation and as a shareholder.


In this guide, we lay out the taxes you can expect to pay when you switch to a proprietorship (or single member LLC that’s taxed as a proprietorship). We show you some techniques to reduce those taxes. When finished, you can see if getting out of that C corporation lobster trap is the right income tax choice for your business.


Choose your own tax treatment


As the owner of a business, you have a surprising amount of control as to ... Log in to view full article.

Log in to view full article
Already a subscriber?
Email Address


Log In

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee