Corps get taxed on profits not on revenue. Employee wages and salaries are expenses which get subtracted off of the revenues. So you only get taxed once.
Note lines 11, 13 and 30. So your statement is true to some extent. If you charged a rate of $100/hour two taxes occur:
You are taxed once on your personal income ($75/hour)
Your corp is taxed on any profits of the remaining $25/hour minus further expenses (rent, insurance, etc.)
Typically, if you are a corp doing business with another corp, you will be able to charge more money than if you were an independant contractor. Plus it is less complicated for the hiring company to hire a corp to do the work.
Slashdot Mirror
Corps get taxed on profits not on revenue. Employee wages and salaries are expenses which get subtracted off of the revenues. So you only get taxed once.
See http://ftp.fedworld.gov/pub/irs-pdf/f1120.pdf
Note lines 11, 13 and 30. So your statement is true to some extent. If you charged a rate of $100/hour two taxes occur:
Typically, if you are a corp doing business with another corp, you will be able to charge more money than if you were an independant contractor. Plus it is less complicated for the hiring company to hire a corp to do the work.