Can someone please provide an example of the different tax benefits of an LLC, S Corporation, and C Corp???

like provide a sample income statement for me???

Can someone please provide an example of the different tax benefits of an LLC, S Corporation, and C Corp???
The income statements would essentially be the same. The difference would be in the allowance for income taxes. C corp would have it and the others would not (unless the llc has elected to be taxed as a c corp).





Tax benefits:


LLC: Taxed essentially like a partnership. All income is passed through to the members and reported on their personal returns. All members are considered limited so the liability exposure is only their investment.


S Corp: Files Form 1120S and income is passed thru to shareholders and reported on their personal returns. If a prior C Corp, could have built in gains tax exposure.


C Corp: Taxed on form 1120 and any dividends paid are taxed at the shareholder level as well.
Reply:The three entities calculate their taxable income in essentially the same manner. The main difference is that the owners of the LLC and S Corp incude their share of that taxable income in their returns. The LLC and the S are not tax paying entities. The C corp pays tax on its taxable income. And, when the after tax income is distributed to the owners of a C corp (either as dividends or liquidating distributions) the owners are taxed on that income. So, C corp income is eventually taxed twice, once at the corporate level and once at the shareholder level.





On the otherside of the equation, owner/employees of a C corp may receive benefits (group life and health insurance, etc) not available to the LLC or S. The C corp can deduct the expenses of those benefits in determining its taxable income.

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