Personal Service Corporation Tax Status

The tax status of a C-Corporation or taxable LLC which provides consulting or personal services. A company with this tax status must pay the top corporation tax rate on its taxable income. (Tax Loophole: The graduated corporate tax rate starting at 15% can be used if at least 6% of the stock in the corporation or units in the taxable-LLC are given to a person not employed by the corporation or taxable-LLC.)