I wouldn’t say higher but it is definitely different.
You might need to pay more tax because of double taxation. You are your own entity and the corporation is also an entity. This means that the corporation has to pay taxes on profits and you also have to pay taxes personally on the salary/dividend that you recieve.
But there are also other tricks to reduce or optimize taxes like tax reduction on business expenses.
When you’re a business owner, you can usually optimize to pay the least amount of taxes possible with the help of an accountant. Things that you have less control when you’re an employee.
When you hear large corporations and rich people not paying much taxes (if not at all), some are just being smart with their business and accountants.
I wouldn’t say higher but it is definitely different.
You might need to pay more tax because of double taxation. You are your own entity and the corporation is also an entity. This means that the corporation has to pay taxes on profits and you also have to pay taxes personally on the salary/dividend that you recieve.
But there are also other tricks to reduce or optimize taxes like tax reduction on business expenses.
When you’re a business owner, you can usually optimize to pay the least amount of taxes possible with the help of an accountant. Things that you have less control when you’re an employee.
When you hear large corporations and rich people not paying much taxes (if not at all), some are just being smart with their business and accountants.