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))
*(ยง199A 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.