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    Beverly Hills Location
    9171 Wilshire Blvd.
    Suite 500
    Beverly Hills, CA 90210
    Phone: 310-271-2272

    "C" Corporations

    In General: The "C-Corporation" designation merely refers to a standard, general-for-profit, state-formed corporation. The “C” comes from subchapter C of the Internal Revenue Code which controls the method of taxing profits and operations.

    Double Taxation: Generally, the C-corporation is taxed on its own profits; then, any profits paid out in the form of dividends are taxed again to the recipient as dividend income at the individual shareholder's tax rate. This creates a “double tax” on the same income.

    Tax Planning a Must: With proper tax planning, most small corporations avoid paying dividends. Rather, owner-employees are paid salaries and fringe benefits that are deductible to the corporation. The result eliminates the corporate level profit, but does not eliminate self-employment taxes which can be substantial

    Annual Tax Filings: The C-corporation files its own annual corporate tax forms each year using IRS form 1120. Requisite state forms may also be required.

    Call us at 310-271-2272 to help you determine the best structure for your business.

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    Morovati, Inc. is a Beverly Hills CPA firm that provides a wide variety of accounting, tax and financial management services. Our clients are located in towns like Beverly Hills, Santa Monica, Redondo Beach, Sherman Oaks, Los Angeles, Culver City, Encino, and more. We service clients in Los Angeles County and Orange County.