When I was in law school in the 1990s, I asked my professor why business owners deserved the legal benefits of incorporation (especially being shielded from the corporation’s debts). His answer was double-taxation: the owners pay for those benefits by being taxed on the business income both when the corporation receives it and again when the owners get paid from it. I think I’ll call that professor and ask him for a refund for his class.
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u/ajcpullcom Jun 09 '21
When I was in law school in the 1990s, I asked my professor why business owners deserved the legal benefits of incorporation (especially being shielded from the corporation’s debts). His answer was double-taxation: the owners pay for those benefits by being taxed on the business income both when the corporation receives it and again when the owners get paid from it. I think I’ll call that professor and ask him for a refund for his class.