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Is double taxation a reason to avoid a C corporation?

Incorporation & entity structure

Not for a company raising venture capital. Investors require a C-Corp, and converting later costs more than the tax difference.

For a profitable owner-operated business that distributes its profits, it is a genuine consideration, and an S election or an LLC may suit better.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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