Professional services
Corporate Tax Calculator
Corporate tax on profit, and the second layer when profit is distributed as dividends.
Result
Not tax advice. Entity choice, reasonable compensation, pass-through deductions and state treatment interact in ways that depend entirely on your circumstances, and the rules change annually. This estimates a set-aside; the decision belongs with an accountant. C corporation profit is taxed at the entity and again on distribution, which is why most small businesses choose a pass-through structure. Retained earnings avoid the second layer until they are distributed, and there are accumulated earnings rules limiting how long that can continue. State treatment varies widely and some states impose franchise taxes regardless of profit.
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About this calculator
Why would anyone choose a C corporation?
Retaining earnings for growth, offering certain benefits, attracting institutional investors, or where the corporate rate is below the owner's personal rate. For a small owner-operated business the double layer usually outweighs those.
Can I avoid the second layer?
By retaining earnings rather than distributing, within limits, or by paying salary instead of dividends, which is deductible to the company but taxed as ordinary income to you. Both have constraints.
The formula
corporate tax on profit, then shareholder tax on whatever is distributed from what remains
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