Corporate Taxation Law

What Are Corporate Taxation Laws?

Corporate Tax laws relate to the systems of taxation used for taxing incorporated entities, including businesses and not-for-profit charities. These laws often differ from the systems for taxing individuals, and in some cases can have implications for individual taxation, as well. For example, S Corporations enjoy what is known as pass-through taxation. The corporation is not responsible for paying taxes, but the obligation instead passes-through to the shareholders.

Corporate taxes can refer to taxation systems for both state and federal level taxes. Additionally, different taxing structures may apply to corporations based on their type. For example, a not-for-profit corporation engaged in charitable or religious activities may qualify for 501(c)(3) tax exempt status. Additionally, other kinds of corporations must observe certain tax practices to maintain their status, such as not-for-profits that misapply their earnings.

Corporate tax is often used generically to refer to the taxation of other business entities, as well. For example, entities treated as partnerships are generally not taxed at the entity level like a corporation, but rather the partners are taxed individually. Nevertheless, tax laws pertaining to partnerships are often called corporate tax laws.

Company income subject to taxes is often determined much like taxable income for individuals, where the tax is generally assessed against net profits and a variety of deductions are allowed. Common deductions include travel expenses, rent, office supplies, and many others.

For more information about corporate tax laws, please review the materials below. Additionally, to find a list of attorneys in your area who can assist you, including corporate taxation attorneys, please refer to our Law Firms page.


Corporate Taxation Law Articles

  • Should You Incorporate Your California Medical Practice?
    All businesses need to have the right foundation in place; medical practices are no exception. This raises an important question: Should you incorporate your medical practice in California? A medical practice with more than one physician should generally be incorporated as a professional corporation (PC). In this article, our Fremont medical practice attorney highlights the most important things to understand about the business structure for a medical practice in California.
  • Benefits of the Intellectual Property Holding Company
    Many companies invest significant funds to develop products and services and the related intellectual property and to retain ownership of such assets. This intellectual property can be a critical element for the success and continued growth of the business. But many nosiness owners focus on the operations of the business and do not take advantage of the tax benefits and liability protection that may be afforded by use of an intellectual property holding company.
  • What Is the Difference Between a Management Company and a Holding Company for Real Estate Investors?
    As a real estate investor that’s new to the business, you may be curious about how to secure your investments and what type of business structure would work best for multiple properties. In this case, many people choose to create holding companies that hire management companies to oversee each individual property’s daily ins and outs. If you aren’t sure what that means, don’t worry—we’re going to explain everything in this article.
  • Section 962 Election for GILTI (Global Intangible Low-Taxed Income)
    The introduction of GILTI (Global Intangible Low-Taxed Income) under the TCJA brought with it significant tax implications for US shareholders of Controlled Foreign Corporations. For a domestic corporate shareholder, they are able to take a 50% deduction -- along with utilizing upwards of 80% of foreign tax credits paid by the foreign corporation. So, at the end of day -- the domestic corporate shareholder may not suffer any actual GILTI tax consequence. The tax implications for individuals is much worse, because individuals cannot take the 50% deduction or claim foreign tax credits paid by the foreign CFC -- unless they make a section 962 election. The finalized regulations do allow for this type of election for individuals, so it is important that individuals have a baseline understanding of what a Section 962 Election is.
  • Do I Need to Set Up an LLC Before Buying an Investment Property?
    Suppose you’re thinking about purchasing an investment property or two. In that case, you’re probably wondering whether or not you need to set up an LLC for the property. Generally speaking, it’s not required. So, for example, if you’re investing in a house that you can rent out for a second income stream, an LLC may not be legally required. However, regardless of the type of property or how many you decide to purchase, you absolutely should set up an LLC.
  • Do I Need a Written Will for Estate Planning in Alabama?
    When we talk about estate planning, we refer to how your assets will be handled after you’ve passed away. The term assets include many things, such as your house or other properties, business, cars, artwork or other collections, stocks, pensions, life insurance, and even your debt. The entire purpose of planning an estate is to ensure your family’s wellbeing and that your children and spouse are cared for.
  • How Does the Alabama Business Privilege Tax Affect my Huntsville Business?
    Business owners and entrepreneurs are no strangers to the concept of paying state and federal taxes. However, there are additional taxes that Alabama business owners must pay for the privilege of doing business here: the Alabama Business Privilege Tax. As a current or prospective Alabama business owner, it is essential to become familiar with the Alabama Business Privilege Tax. While this post will help you understand key issues, an Alabama business lawyer can provide advice and guidance while avoiding legal mistakes.
  • What Is a Sole Proprietorship, and How Is It Different From a Huntsville Llc or a Alabama Corporation?
    When starting a business, a lot of people tend to get lost in the excitement. A new business is a unique opportunity to get your ideas across to people and find success. In their excitement, they tend to forget about many important decisions that they need to consider. One of the first decisions that a business owner needs to make is what structure they’ll be using. There are several business entity structures to choose between. One of the most popular for individual business owners just starting out is the sole proprietorship.
  • What Is an S Corp? Is it Different than a LLC?
    Are you thinking about filing for S Corporation tax status for your business because you’ve heard of the benefits—but aren’t sure exactly what that tax status means or how to go about it? In this article, we’re going to give you a crash course in S Corporations, including how to file for it and how to meet the requirements.
  • How can my Huntsville LLC be a S Corp for IRS Taxation?
    Limited liability companies (LLCs) are business entity structures in Alabama designed to add flexibility for their owners while providing the benefits of limited liability protection. An LLC can be taxed in several ways which can be rather beneficial to the business and its owners for various strategies to save money on taxes. In this article, we’re going to take the time to look into how an LLC is normally taxed and what your other options are as far as choosing how you want your business to be taxed moving forward, i.e., as a Subchapter-S electing entity, like an S Corp. So, if you were wondering about your different tax options as a new LLC business owner, then keep reading.
  • All Taxation Law Articles

    Articles written by attorneys and experts worldwide discussing legal aspects related to Taxation including: corporate taxation and tax planning.

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