A C corporation is generally a separate taxpayer. Corporate profits and shareholder dividends can create tax at different levels, which is one reason entity choice requires a full comparison.

A corporation may still be appropriate for business or financing reasons. Compare how profits will be retained or distributed instead of selecting a structure from its headline tax rate alone.

Your next steps

• Forecast profits and planned distributions.
• Review ownership and financing goals.
• Compare corporate and shareholder-level consequences.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.