In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions.
The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. However, shareholders cannot deduct any loss of the corporation.
Let us help you with the best decisions on how to organize your corporation and establish a framework to address all aspects of record keeping, tax filing, payroll processing and filing, as well as address any implications to the shareholders.
