Overview of More Corporate Advantages
The limited liability a corporation provides its shareholders is certainly one vital reason to incorporate. However, a corporation provides additional benefits that may not be available through other entities:
- Employees can participate in corporate profits and defer their income in corporate retirement plans.
- Corporations frequently enjoy lower tax rates than individual taxpayers.
- Tax brackets may be split among several corporations.
- Social Security payments are 50% tax deductible to the corporation.
- Trusts, limited partnerships, LLCs and other protective entities can own a C corporation.
- One can frequently consolidate the income and losses of one corporation with those of other corporations to reduce overall income taxes.
- Corporate shares can be donated to maximize deductible charitable contributions.
- Certain tax-deductible fringe benefits are available only through a C corporation.
The advantages of incorporating are significant. But an LLC may give you all the corporate advantages and other advantages that corporations do not provide.
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