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C-Corp vs S-Corp Election Analysis

The 21% flat rate can beat pass-through in some cases.

Overview

Post-TCJA, C-corp 21% flat + QSBS potential can beat 37% top individual rate when you don't need distributions. S-corp wins if you distribute earnings. Model both — check qualified dividend rate, accumulated earnings tax, and state impact.

Best fit
Growing businessesFounders considering exitReinvestment-heavy models
Estimated impact
5–15% effective rate arbitrage

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