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What is double-tax and how do I avoid paying it?

You can avoid paying double taxes by forming your business as an LLC.

The major disadvantage of a C-Corporation is that it is subject to “double-taxation.” It is called “double-taxation” because a C-Corporation’s profits are taxed at the corporate level, and then again at the individual level when the profits are paid out to the owners.

LLC’s do not pay tax. Taxes are only paid by the individual owners of the company when distributions are made, so your company's profits are only taxed once.

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