C-Corps Without the 'Double-Tax' Burn: 3 (and a Half) Ways to Pull Cash Out—Legally
Fri Dec 05 2025
Jeremy Bollinger and Ian Grove zoom into C-corporations—what they are, why they're back in style, and how owners can get money out without getting clobbered. Unlike pass-throughs, C-corps pay their own tax (flat 21% federally), so owners must be strategic when extracting cash. The guys break down the three primary methods—W-2 wages, taxable dividends, and shareholder loans (at or above AFR)—plus the "half" method: qualified retirement plan funding (401(k)/profit share/cash balance DB) that moves cash to you, just later. They also touch on PTET vs. SALT cap, why "reasonable comp" rules differ from S-corps, and advanced planning like QSBS §1202 for potentially tax-free exits (facts-and-circumstances heavy, document everything).
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Jeremy Bollinger and Ian Grove zoom into C-corporations—what they are, why they're back in style, and how owners can get money out without getting clobbered. Unlike pass-throughs, C-corps pay their own tax (flat 21% federally), so owners must be strategic when extracting cash. The guys break down the three primary methods—W-2 wages, taxable dividends, and shareholder loans (at or above AFR)—plus the "half" method: qualified retirement plan funding (401(k)/profit share/cash balance DB) that moves cash to you, just later. They also touch on PTET vs. SALT cap, why "reasonable comp" rules differ from S-corps, and advanced planning like QSBS §1202 for potentially tax-free exits (facts-and-circumstances heavy, document everything).