As a C corp, some of the benefits described above would no longer apply.
Taxes Can’t Be Offset
Since C corps pay their own tax at the entity level, any losses won’t be available to offset other items of income the shareholders might have.
Ineligible for QBI Deduction
C corp income doesn’t qualify for the QBI deduction.
Negates Preferential Tax Rates
The tax rate in a C corp applies to all items of income, which negates the benefit of preferential tax rates on items associated with the forest products industry.
Distributions Are Taxed
If a C corp accumulates earnings, distributions shareholders require won’t be tax free.
Distributions out of a C corp are taxed as dividends to the shareholders, which creates a double tax environment. C corp earnings are taxed and after-tax dollars in the C corp are taxed again when they’re distributed.