C Corp Double Tax Trap Costs You $11,200 in 2026
Published April 27, 2026 · 0:45 · 2 views
Key takeaways
- You picked C Corp because a podcast said investors wanted wrong.
- [music] You're paying 21% corporate tax.
- Then you pay again on dividends.
- [music] Same $140,000 revenue as an LLC costs you $11,200 more.
Summary
C Corp double taxation costs small businesses $11,200 more than LLC on $140,000 revenue in 2026 due to 21% corporate tax plus personal dividend tax. • LLC owners save $5,600 with the 20% QBI deduction on income under $182,100 (2026 threshold) • C Corp makes sense only above $500,000 reinvested profit or with active term sheets • 67% of founders pick C Corp for investor optics that VCs ignore in 2026 → ReputationZilla helps founders fix tax structure mistakes: https://reputationzilla.org #LLCvsCCorp #SmallBusinessTax2026 #QBIDeduction #StartupTaxes #ReputationZilla
Full transcript
Auto-generated transcript. Watch the video for the full context and visuals.
You picked C Corp because a podcast said investors wanted wrong. [music] You're paying 21% corporate tax. Then you pay again on dividends. That's double taxation.
[music] Same $140,000 revenue as an LLC costs you $11,200 more. >> [music] >> Venture firms in 2026 care about traction and terms, not your tax [music] election. You're paying for a signal that doesn't work. LLC pays zero entity tax.
You report on your 1040 and claim the 20% QBI [music] deduction. That deduction alone saves $5,600. Don't pick C Corp before you hit $500,000 revenue or have a term sheet in hand.
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