Your AI CFO for United States.

Federal Corporate Income Tax

Federal Corporate Income Tax is the US federal tax on C-corporation taxable income. It is a flat 21% rate (post-TCJA, since 2018). S-corporations, LLCs and partnerships are pass-through entities and do not pay federal corporate income tax — profits flow to owners' personal returns.

Self-Employment Tax

Self-employment tax is the US federal tax that covers Social Security and Medicare contributions for self-employed people, sole proprietors, and partners. The combined rate is 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment earnings.

EIN (Employer Identification Number)

The Employer Identification Number is a 9-digit federal tax ID issued by the IRS to identify a business entity. Required for any entity with employees, all C-corps, S-corps, multi-member LLCs and partnerships. Single-member LLCs without employees can use the owner's SSN but commonly get an EIN for banking and 1099 reporting.

C-Corporation

A C-corporation is a US business entity taxed separately from its owners under Subchapter C of the Internal Revenue Code. It pays 21% federal corporate income tax on profits, and shareholders pay personal tax on dividends — the 'double taxation' of C-corp profits. Most VC-backed startups are Delaware C-corps.

S-Corporation

An S-corporation is a US entity that elects pass-through taxation under Subchapter S. The corporation itself pays no federal income tax; profits flow to shareholders' personal returns. Limited to 100 shareholders, all US individuals (or certain trusts), and one class of stock. Owner-employees must pay 'reasonable compensation' as W-2 wages subject to FICA.

LLC (Limited Liability Company)

An LLC is a US business entity that combines limited liability with flexible tax treatment. Single-member LLCs default to disregarded entity status (taxed as sole proprietor on Schedule C). Multi-member LLCs default to partnership taxation (Form 1065). LLCs can elect S-corp or C-corp tax treatment via Form 8832/2553.

Yes — US self-employed people can claim the home office deduction using either the simplified method ($5/sq ft up to 300 sq ft = $1,500 max) or the regular method (actual expenses × business-use percentage). Employees cannot claim home office under TCJA (2018–2025).

Yes — US self-employed people can claim vehicle expenses using either the standard mileage rate (67¢/mile in 2024, 70¢/mile in 2025) or the actual expense method (gas + insurance + depreciation × business %).

Partially — US business meals are 50% deductible under IRC Section 274(n). The temporary 100% deduction for restaurant meals (2021–2022 only) has expired. Entertainment is NOT deductible at all under TCJA.

Yes — ordinary and necessary business travel away from your tax home is fully deductible (transport, lodging, dry cleaning, etc.) plus 50% of meals. The trip must be primarily for business — personal vacation days mixed in get apportioned.

Yes — fees paid to CPAs, tax preparers, attorneys, bookkeepers and consultants for business purposes are fully deductible. Capitalize legal fees that relate to acquiring assets or organizing the business.

Yes — SaaS subscriptions used for business are fully deductible in the year incurred. Perpetual software licenses can be deducted under Section 179 (immediate expense up to $1.16m in 2024) or amortized over 36 months.