John,

You are partially correct. If you register in your state as a corporation and successfully file Form 2553 with the IRS, you can elect to become an S corporation which treats your profits as personal income.

If you are a stockholder of an S corporation, at the end of the year your accountant will provide you with a Form 1120 that reports the unappropriated retained earnings of the corporation, which you will plug into your personal tax return and be liable for as taxable income.

S corporations do not pay a corporate tax. C corporations get the double tax that you mentioned.

Ah, yes, I did not address all corporation entities.... :-$

as you can see, that is why I never have played an Accountant on TV :O)

currently we are set up as an LLC, we are thinking an S Corp may be the next logical step...... I will NOT be the one doing the Due Diligence!
:>

John,

Yes we are an S Corp. Too much detail & forms to file monthly or quarterly for me to remember, that's why we have a CPA to keep things straight.
And keep ME out of jail.

Call me a nerd, but I love doing the books, messing with all the tax forms, etc. Fortunately, my software saves me enough time that it makes it viable for me to keep doing it in house.

One thing I don't like doing is paying all of the taxes. Grrrrr! :@

Dave,

I think the colors for Jeanette's emoticon should be Blue & Silver.....

Go Cowboys!

~