Business Planning
Tax Examples
From Problem 3-A
| C-Corp w/ 100k Div | C-Corp w/ 100k Salary | S-Corp w/ 40/60 Sal/Div Split | Partnership Owning 90% | |
|---|---|---|---|---|
| Corp. Income Tax | 31.5 | 8.893 ((150 - 100 - (15.3 / 2)) * .21) | 0 | 0 |
| Ind. Income Tax | 15 | 24 | 35.26 (.24 * (40 + 106.94) (150 - 40 - (40 * .0765)) *(§199A would take off 5.13) |
|
| Payroll Taxes | 0 | 15.3 (100 * .153) | 6.12 (40 * .153) | Total Taxes | 46.5 | 43.195 | 36.252 |
Dividend is preferable, but the IRS will audit if you don't have enough salary.