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Pass through Entity Income Tax Voucher Mississippi Department Dor Ms Form

Pass through Entity Income Tax Voucher Mississippi Department Dor Ms Form

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in this video we explain how taxes are paid differently by a pass through entity versus a corporation and how this affects your income 80% of family businesses operate as a pass through entity like an S corporation LLC or partnership the term pass through means that the income from the family business passes through to the owner's individual tax return and is not taxed at the business level the owners pay tax on the passrs income even if there's no cash distribution what's more family owners pay tax on the business income based on their individual tax rate not the corporate tax rate today the highest individual income tax rate is 37% and the corporate rate is 21% here's an example a corporation earns $1 million and pays 21% or $210,000 in taxes if the corporation pays out 25% as dividends the shareholders not the company will pay tax up to 23 8% on the dividends that's an additional [Music] $47,552 n95 left over from the corporation's 1 m

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