Overview of Corporate Taxation

The video tutorial explains how individuals associated with corporations are taxed. Officers and directors receive salaries subject to income tax, while shareholders receive dividends taxed at a dividend rate. Corporations themselves are taxed as entities, with profits distributed to shareholders after taxes. Dividends are not subject to self-employment taxes. The video also covers the taxation of equity compensation, highlighting various methods to defer or offset taxes.

How are officers and directors of a corporation compensated?

How does the taxation of corporate profits differ from individual income taxation?

What is the tax treatment of dividends received by shareholders?

What are the implications of receiving equity compensation for officers and directors?

In what ways can individuals defer or offset taxation on their compensation?