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Assuming it’s an S-corp, Founders will try to get as much as possible in profit/dividends, as that is taxed better than income.




when your annual revenue is < $25K this is not typically a concern. Also that's true from the corporation's perspective but not always true because of the double taxation from the individual's side. I always find the timing flexibility (which effective tax year) far more valuable than the employment vs. investment income differentiation.

Dividends aren’t double taxed?

Unless I’m misunderstanding something.




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