A corporation is a legal entity that is maintained separately from the existence of its owners. It is created by filing the required documents with the state in which it is organized.

A corporation is considered the most complex type of entity. An annual corporate tax return is required to be filed by the IRS and by most states. Corporations pay income tax at the corporate level. If dividends are paid to company owners, then the owners must claim the dividends as income and pay tax on them. For this reason, corporations are often considered to be subject to double taxation.

At My Way CPA, we have the expertise and experience to ensure you minimize your corporate and personal tax liabilities.