Damon Ritchhart explains that C corporations are used by Meta and Google but rarely make sense for small-business owners unless they plan to go public. The main problem: double taxation, where the corporation and its shareholders both pay tax on the same earnings.
Here we go again. Damon Van Fleet, owner of PayLessTaxes.com and the PLT Firm. And in this 60-second video, I'm going to be talking to you guys about what is a C corporation. A C corporation is what you see most often publicly traded. It's your Facebook, or now your Meta. It's your Google. It's your things like that. C corporations. For most of you guys, a C corporation is not going to make sense. The only way a C corporation might make sense is if you already know, already out of the gate, that you are probably gonna want to IPO your company and take it public. The main thing that people say is not good about a C corporation, and it is true, is that it's doubly taxed. In another video, 'cause I barely have time in this one at 60 seconds, I'm gonna talk about double taxation, what that actually means. But real quick, with C corporation, you're gonna be getting paid a salary from the C corporation, and you're gonna have to pay taxes on that. And the C corporation itself is gonna have to pay taxes on it. So I'll get into that in more detail, but that's what a C corporation is. It's just a business entity.
