Friday, January 29, 2016

What You Need to Know About Corporate Tax

If you own a business, then you need to be aware of corporate tax law because it applies to you and your business!

Simply put, corporate tax is the taxation that exists on any profits your business earns.  

How much tax you’ll have to pay is dependent on your profit level. However, some factors that go into determining your taxation include:

l  Cost of goods sold
l  General fees
l  Administrative fees
l  Depreciation

One thing you should keep in mind as you file your taxes, however, is that you yourself are not the corporation. You, as an individual, will still have to file your own taxes; corporate taxes are a whole different ballgame. However, that is not to say that your income tax and your profit corporate taxes aren’t related; obviously, the more you earn, the more you’ll have to pay in taxes.

In fact, earned profits are usually double taxed, which means the earning themselves are taxed as well as the shareholders. However, in some cases, such as when your business qualifies as an S corporation, are not subject to corporate taxes.


To ensure that you are not paying more taxes than you should, make sure you consult with a tax advisor who knows you are a business owner and acts accordingly. With the right help, you can find all the right loopholes to still pay your corporate taxes legally and benefit personally as much as possible.  #CorporateTax

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