Dear TaxGuru,

I have a small C Corporation and it seems from my bookkeeper that I will have a small profit of $65,000 from my corporation. How much taxes would I owe?

Here are the actual corporate tax rates or 2006!

Corporate Income Tax Rates--2006

A C-Corporation pays its own income tax and this tax is calculated based on the business’s taxable income. The C-Corporation tax rates are based on a graduated tax scale.

The first $50,000 of taxable income is taxed at 15%
The next $25,000 of taxable income is taxed at 25%
The next $25,000 of taxable income is taxed at 34%
The next $235,000 of taxable income is taxed at 39%
The next $9,665,000 of taxable income is taxed at 34%
The next $5,000,000 of taxable income is taxed at 35%
The next $3,333,333 of taxable income is taxed at 38%
Any taxable income over $18,333,333 is taxed at 35%

For the small business corporations, the main point observe is that the first $50,000 of C-Corporation taxable income is taxed at 15%.

Personal Service Corporation:

Personal service corporations are subject to a flat tax of 35% regardless of their income.