| The federal business tax is referred to as corporate | | | | taxed on the profits and then again on the dividends it |
| tax. This is where the IRS gets its hands on the profits | | | | gives out. This is a double taxing which is not popular |
| of corporate America. This is because the tax is | | | | and at times can be avoided with the way certain |
| leveled on the profit value of corporation revenue. | | | | companies do their book work. |
| Unlike personal income tax, this tax has been reduced | | | | In America, the tax rates for business is as follows: $0 |
| in the past decade from 35% to 26.3%. The main | | | | to $50,000 is 15%, $50,000 to $75,000 is 25%, $75,000 |
| theory behind this reduction is that countries are now | | | | to $100,000 is 34%, $100,000 to $335,000 is 39%, |
| competing for companies on a global scale. Those | | | | $335,000 to $10,000,000 is 34%, $10,000,000 to |
| countries with the lowest taxes benefit from having | | | | $15,000,000 is 35%, $15,000,000 to 18,333,333 is 38%, |
| more companies relocating within their borders. | | | | and above $38,333,333 is at 35%. |
| In the United States, businesses are eligible to be taxed | | | | Personal service corporations are subject to a flat |
| if they were formed in the United States or do | | | | rate of 35%, immaterial of their profit amount. |
| business within its borders. This includes some | | | | Corporations do have to pay business tax, it just |
| partnerships and limited liability companies. | | | | depends on how much they make just like individual |
| When a foreign-owned company conducts business in | | | | income tax does. Of course, the above is not legal or |
| America, it is only taxed on the profits from its | | | | accounting advice -- it is for informational purposes |
| business in America. There are some American | | | | only. Before making any decisions regarding legal or |
| companies that are subsidiaries of foreign-owned | | | | tax matters, it is vital that you consult a licensed |
| companies. If the US company gives the foreign | | | | professional lawyer or tax accountant. |
| company dividends on the profits, this company is then | | | | |