More Corporate Advantages
Additional Advantages to Forming a Corporation
The limited liability a corporation provides its shareholders is certainly one vital reason to incorporate. A corporation, however, provides additional benefits that may not be available through other entities.
These benefits exclusive to corporations can amount to the following:
- 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 you need along with others that corporations can’t provide.
With so much to consider and so much at stake, getting an attorney to help your business can be a lifesaver. The lawyers from The Presser Law Firm, P.A. can help you figure out which decisions are best for your company.
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