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