The corporation itself does not pay taxes, but files an informational tax return mentioning each shareholder s portion of the corporate income. If only 1 member, the business profits are taxed as in the sole proprietorship. If at least 2 members, the business profits are taxed as in the partnership. The owner can either take an owner s draw or receive a reasonable salary. Depending on the partnership agreement, partners can receive a reasonable salary.
Managers can receive a reasonable salary.
Managers can receive a reasonable salary. Profits after tax can be distributed to partners based on the agreement or can be reinvested in the company. Profits after tax can be distributed as dividends or reinvested in the company. Profits after tax can be distributed to shareholders based on their contributions or reinvested in the company. If only 1 member, profits are distributed as in the sole proprietorship.