S corporations pay taxes at a higher rate than do regular corporations.

Name: S corporations pay taxes at a higher rate than do regular corporations.
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S corporations are not subject to federal income tax. Rather, their income or losses are passed through to shareholders, who report the amount on their individual tax returns and pay taxes on the income at their individual tax rates. Regular corporations, on the other hand, are subject to federal income tax.

S Corporations Pay Taxes at a Higher Rate Than Do