Corporate Tax Returns
A corporation is a separate legal entity. A corporation itself can enter into contracts, incur debts and pay taxes apart from its owners. These types of businesses must pay corporate income taxes on their profits, after paying salaries, bonuses and factoring in deductible expenses.
These businesses must file “articles of incorporation”. Corporations should also create bylaws, which determine the rules for governing business formalities and decisions.
The advantages of a corporation include an ability to raise funds by selling shares of the company and deduct the cost of employee benefits. Corporations also have disadvantages, such as extra time and money to form the enterprise, and government monitoring resulting in additional paperwork.
Entrepreneurs must decide what type of business they wish to form and follow the necessary formal and legal requirements to register the company, if necessary. Sole proprietorships, partnerships and corporations each have their own advantages and disadvantages that business owners should strongly consider before jumping into anything to quickly.
Let our up-to-date tax professionals fill you in on all the newest laws and changes concerning corporate income taxes.