A C corporation differs from a sole proprietorship in that the C corporation:

a.Is a separate taxable entity with its own return
b.Never needs a contractor's licence bond at all
c.Is exempt from payroll taxes on the wages it pays
d.Cannot hold a contractor licence of its own

Giải thích

A C corporation exists apart from its shareholders, files its own Form 1120 and pays tax on its profits, and the shareholders are taxed again on dividends; a sole proprietorship has no separate existence and reports on the owner's Form 1040. The corporation still needs the licence bond under B&P §7071.6, and a corporate licence also needs a qualifying individual. It withholds and pays payroll taxes on its employees like any employer. And a corporation can and routinely does hold a contractor licence under B&P §7065.

Trích dẫn luật: Corp. Code §200; Bus. & Prof. Code §7065

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Đội ngũ PrepPass · Đối chiếu với California CSLB Contractor License Law & Business Exam · Quy trình kiểm tra
Người kiểm duyệt Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — kiểm tra)
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