C-Corp Progressive Tax Rates ?

[remozseo]

I am not able to find a tax list, that shows me specifically the

-C-Corp Progressive Tax Rates (Federal)

On top of it, it would be great to see all State Income Tax rates for C-Corporations.

Does anybody know an official website or page that provides that info ?

Thank you so much for any little help !

[tallen]

One place where you will find the federal C-Corp progressive tax rates is on page 17 of this document: https://www.irs.gov/pub/irs-pdf/i1120.pdf

You can find a listing of State corporate income tax rates here: Tax Rates (http://www.taxadmin.org/tax-rates), or here: State Corporate Income Tax Rates and Brackets for 2015 | Tax Foundation (http://taxfoundation.org/article/state-corporate-income-tax-rates-and-brackets-2015)

[BNB]

WHY do you want to be a C-Corp? If you don't know anything about C-Corp taxation, it implies you may not understand the different corporate structures and what is right for you. You really need to sit with a professional accountant and discuss your business plans.

[remozseo]

@tallen:
Thank you.

@BNB:
Yes, I already did. And it's best for me to go with a C-Corp.
I just couldn't find any official website that provides simple tax rates.

Tallen posted a link to a .pdf in which I was able to find it.



$0 $50,000 15% $0
50,000 75,000 $ 7,500 + 25% 50,000
75,000 100,000 13,750 + 34% 75,000
100,000 335,000 22,250 + 39% 100,000
335,000 10,000,000 113,900 + 34% 335,000
10,000,000 15,000,000 3,400,000 + 35% 10,000,000
15,000,000 18,333,333 5,150,000 + 38% 15,000,000
18,333,333 . . . . . 35% 0


One thing I totally forgot to ask... do you actually have to hire someone when you have your C-Corp started ?
Or can you simple own it without having anyone employed ?

I know.. it might sound like a weired question... but I rather have no one employed.. not even myself.
Strange, right ?

[Freelancier]

The corporate entity exists when you create it. Whether you staff it does not matter at all. You just need to have its board of directories (in this case, you), and you need to pay attention to having corporate minutes logged somewhere as well as keep your registration up to date each year.

[Evan]

Forming a corporation requires following formalities, such as having a shareholders meeting and board of directors meetings, even if that's just you. Often you can waive those meetings if you set up the correct legal provisions in your corporate bylaws and if permissible in the state you're operating.

So as a shareholder, you're likely on the board, and also likely an officer and the sole employee. Whether you are compensated at this point is up to you, but at some point you would take a salary.

For most people, paying dividends results in an effectively higher tax rate on income than if you just paid yourself a salary. But of course the fact you're assuming a C-Corp is a worthwhile venture, I assume you'd know this.

That said, C-Corps make sense, but typically only for those already in the highest tax brackets. And even when that is true, it is better to be paid a salary than to take dividends. And further, if you have employees (including you), you do need to make sure you look into worker's compensation insurance.

[Freelancier]

Did I really type board of "directories"??

[Evan]

Did I really type board of "directories"??

You did :)