Advantages and Disadvantages of Forming a Corporation
Because they are considered employees, and not owners, they are able to reduce self-employment taxes that individuals within another entity formation, like an LLC, would have to pay. The salary, dividends, and additional compensation they receive help reduce self-employment tax liabilities. Before discussing the advantages and disadvantages of a corporation, we must first understand what makes up a corporation. The simple definition of a corporation is a legal business entity that exchanges ownership of a company, also known as [...]
