Rashida and chintan were so excited about opening and incorporating their business that they forgot to get advice on the tax implications of their business ownership structure as they get ready to pay their first round of taxes they realize they will face double- level taxation what tax structure did they choose
Rashida and Chintan likely chose to structure their business as a C corporation, which is subject to double taxation. This means that the corporation itself is taxed on its profits, and then the owners are taxed again on the dividends they receive from the corporation. They may want to consider changing their business structure to a pass-through entity like an S corporation or a limited liability company (LLC) to avoid double taxation.
