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In my opinion, the C corp is one of the greatest pitfalls in tax planning for the small-business owner, and it astonishes me how many lawyers promote it. If they want to sell setting up a new corporation, that’s fine. However, I wish they’d sell the S corp, which might actually help people achieve their business goals.

Essentially, there are three myths used to sell entrepreneurs C-corp packages they don’t need:

• The myth of extra tax deductions
• The myth of lower corporate tax rate vs. personal tax rates
• The myth that they can avoid the double-taxation problem with a higher salary

Let me briefly address each of these myths and suggest you use them as a starting point for a mindful consultation with your CPA or tax attorney.