Attention Business Owners ! Do you understand business tax liability? It is important to understand Federal & State Income Taxes for “Self-Employment”. A self-employed person earns a living by working for himself. But in a corporation, the self-employed person becomes both an owner & an employee. All companies pay Federal & State taxes on the profit of the company. For a (C- Corp) the company pays taxes & the owners also pay tax on their distributions. There is “double taxation”. For other business structures, taxes may “pass” through to the individual & only be taxed once. The Sole Proprietorship, Partnership, & LLC pay employer & employee portion of Social Security & Medicare (SECA) taxes. Federal & State taxes are paid on the profits of the business. In a corporation the self-employed owner pays half the taxes & the corporation also pays half. In a corporation, the employee’s salary & taxes are considered an expense, thereby reducing business profits. This impacts the amount of Federal & State taxes. For more info, consult with an #attorney at #TheSterlingFirm * 🗓Book Your Consultation: https://ift.tt/2Nhtuf0 * ⠀ 🌐 www.thesterlingfirm.com⠀ 📧 [email protected]⠀ 📲 +1(310)498-2750⠀ *⠀ #businesslawyer

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