Your Tax Compliance Timeline
Navigate your C-Corp's tax responsibilities by filing frequency: initial setup, recurring payments, and annual reporting.
Concept: The C-Corp Double Taxation Trap
C-Corporations are taxed at two levels—the corporate level and the shareholder level. Click to see a simplified flow and its impact.
Double Taxation Flow:
1. Corporate Earnings: $100.00
2. Federal Corporate Income Tax (21%): -$21.00
3. Retained Earnings/Dividends: $79.00
4. Distributed as Dividends: $79.00
5. Shareholder Income Tax (20% estimate): -$15.80
Total Effective Tax on $100 Profit: -$36.80 (36.8%)
WA's Primary Tax: B&O (Gross Receipts)
Unlike income tax, the B&O tax is assessed on **gross revenue** (total sales), not profit. The rate varies significantly by business activity, as shown below: