The primary disadvantage to a professional corporation is the potential for "double taxation". This occurs when the 'Earnings and Profits' of a professional corporation are distributed to shareholders as 'Dividends'. These 'Earnings and Profits' were taxed first as 'Income' earned by the corporation, and again taxed as 'Income' to the shareholder when received as 'Dividends'. The potential for "double taxation" can be minimized, however, since the corporation is permitted to deduct a very broad range of business expenses
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What are the disadvantages of a Professional Corporation?
Category : Professional Corporation
Posted On : 2nd Feb 2010
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Why is this information so heavily relied on by commercial, financial, and legal sectors? How is it used and for what purpose? And I read on this site this site that LLC's didn't have the paperwork that other business had, for instance it was mentioned that you didn't need payroll with an LLC. What about recipts of purchase and how do you account for tips or "Palm Money" ?
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azuka
4th Mar 2013
I'm filing my corporate annual report. I'm not clear on alot of the boxes to fill in, particular number 12a-12g. What info are they asing for? I dont quite understand. Than you
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