Question: Is it true that I save tax dollars if I form an LLC?
Answer: Generally speaking, personal tax rates are lower than corporate tax rates. Corporate income is taxed at 34 to 39 percent. Singles making under $80,000 and marrieds making under $160,000 have a personal income tax of 25 percent. This means that businesses with incomes that are less than $350,000 may experience tax savings by forming an LLC instead of a corporation.
Social and environmentally-savvy business owners have found a new way to integrate their convictions into their business: the B Corporation.