I was on a webinar yesterday which was suggesting that a SCorp gets charged something over 40% in taxes but a professional Corportation is under 25%? What is the difference between the two corporations? In Florida is there such thing as an SCorp Professional Organization? What is that federal tax rate if so?
@querod520 wrote:
In Florida is there such thing as an SCorp Professional Organization?
In Florida you can create a professional corporation if you provide certain professional services outlined in Section 621.03 of the Florida Statutes.
Those professions include certified public accountants, public accountants, chiropractic physicians, dentists, osteopathic physicians, physicians and surgeons, doctors of medicine, doctors of dentistry, podiatric physicians, chiropodists, architects, veterinarians, attorneys at law, and life insurance agents.
I am not sure where you're getting the tax rates but S corporations are pass-through entities; the income, etc., is passed through to the shareholders on Schedule K-1 to be reported on their individual income tax returns.
So then the individual who gets the pass-through income pays according to their tax bracket?
Sorry this other event webinar was saying something like this and I was confused but event was also open to US and Canadians...it was confusing.
So for the SCorp Professional Associations ...are they the most tax beneficial if you qualify to be one?
@querod520 wrote:
So then the individual who gets the pass-through income pays according to their tax bracket?
Yes, that is correct.
@querod520 wrote:So for the SCorp Professional Associations ...are they the most tax beneficial if you qualify to be one?
You need to be a licensed professional (per statute) and can only provide one specific professional service.
This is more for liability purposes than anything else.