How Corporations Are Taxed It pays to learn the ups and downs of corporate taxation before you start your business. Corporations are taxed differently than other business structures: A corporation is the only type of business that must pay its own income taxes on profits.  In contrast, partnerships, sole proprietorships, and limited liability companies (LLCs) are not taxed on business profits; instead, the profits “pass through” the business to their owners, who report business income or losses on their personal tax returns. Understanding Corporate Taxation Because a corporation is a... Read The Rest →