Who pays corporate taxes?

Corporate taxes are taxes that are levied on the profits of businesses, also known as corporations. In the United States, corporations are taxed at the federal and state levels.

Corporate taxes are paid by the corporation itself, not by individual shareholders. However, the burden of corporate taxes may ultimately be passed on to shareholders, employees, and customers in the form of lower dividends, lower wages, and higher prices, respectively.

There are several different corporate tax rates that apply to different types of corporations and different levels of profits. For example, in the United States, the corporate tax rate for most corporations is 21% as of 2021. However, small businesses that qualify for certain tax breaks may be taxed at a lower rate.

It’s important to note that corporate taxes are just one type of tax that businesses may be required to pay. Businesses may also be required to pay other types of taxes, such as sales tax and payroll taxes.

Prominent Financial Consultants offers a range of services to help our clients succeed, and we would love the opportunity to discuss how we can help you. If you would like to schedule an appointment with us, please schedule a free 15 Minute Financial Clarity Call so that we can learn more about your needs and goals or schedule your tax appointment here.