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ACC - Emmy would like to organize PRK as a C corporation with herself as sole shareholder

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Question;Emmy would like to organize PRK as a C corporation with herself as sole shareholder. Emmy expects PRK to generate $15,000 annual income before paying Emmy?s salary. Individual ordinary rates are 25 percent, corporate rates are 15 percent, and individual capital gains and dividends tax rates are 5 percent. PRK will distribute its net earnings (if any) to Emmy.Ignoring employment and self-employment taxes, how much would Emmy keep after taxes if PRK paid Emmy an annual salary of $6,000?Ignoring employment and self-employment taxes, how much would Emmy keep after taxes if PRK paid Emmy an annual salary of $15,000?

 

Paper#42740 | Written in 18-Jul-2015

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