- Double taxation on shareholders (owners) personal taxes
A C Corporation’s net profits are issued to the shareholders in the form of dividends.
The net profits of a corporation are received by the shareholders and are then taxed
personally on the dividends. When dividends are paid to the shareholders, the double
taxation occurs on their personal taxes.
- Extensive business maintenance
In order to keep in compliance with the law and maintain corporate status, ongoing
paperwork must be compiled and completed. Also, holding annual corporate meetings
and registering the meeting minutes.