What is a double taxation?

Definition double taxation

How do we define: double taxation?

Double Taxation is a term referring to the fact that earnings of a corporation may be taxed twice, both as the net income of the corporation and again as the dividends distributed to the stockholders. S corporations and LLCs are pass-through entities which are not subject to the double tax.

Every new business owner must learn about incorporating their company. Learning how to incorporate your company is critical to starting up and protecting your future.


Corporate Glossary



Learn more about how we define double taxation