There happens to be more than one tax advantage available to corporations and if you’re “in the know” you can get more out of these advantages. To begin with, you should probably speak with your lawyer or even a tax professional in order to create a tax structure that will benefit you and works for your business. Safety first!
Several small business owners from around America such as Ian Leaf Corporation take all their earnings out as salaries to prevent double taxation. This also goes for state corporate income tax. Since there are guidelines mandating that these salaries are reasonable, a stockholder’s wage is considered to be too high for their job and the salary earned may be thought of being partially a share and result to double taxation.