BUSINESS TIP ––––––––––––––––––––––––––––––––––––––––––––––––––––––– MAPEI Flexcolor™ CQ is a professional-grade, ready-to- use specialty grout for precision commercial and residential installations with porcelain, ceramic and natural- stone tiles. MAPEI Flexcolor CQ can be used to grout interior/exterior tile, and its nonporous composition helps to prevent water-based stains by providing water repellency to the grout surface. MAPEI Flexcolor CQ is formulated with the latest innovation in quartz aggregate, which ensures color consistency, ease of cleanability and improved workabil- ity. In addition, this grout can be used on sensitive tile surfaces after testing, requires no sealer and cures naturally from evaporation of the low level of water in the formulation. Comparison testing of MAPEI Flexcolor CQ versus traditional Portland- cement grout has verified that MAPEI Flexcolor CQ is 30% more cost-efficient (based on typical rates of installers) and requires 65% less time to install. www.mapei.com. As an S corporation owner, you’d pay tax at the personal level on your share of the corporation’s income and gains. The combined personal tax obligations of S corporation owners can be significant at higher income levels. Dividends vs. distributions Other financial reporting differ- ences between a C corporation and S corporation are more subtle. For instance, when C corporations pay dividends, they’re taxed twice: They pay tax at the corporate level when the company files its annual tax return, and the individual owners pay again when dividends and liq- uidation proceeds are taxed at the personal level. When S corporations pay distri- butions – the name for dividends paid by S corporations – the payout generally isn’t subject to personal- level tax as long as the shares have positive tax “basis.” (S corporation basis is typically a function of capi- tal contributions, earnings and dis- tributions.) Risk of tax audits C corporations may be tempted to pay owners deductible above-market salaries to get cash out of the business and avoid the double taxation that comes with dividends. Conversely, S corporation owners may try to maximize tax-free distributions and pay owners below-market salaries to minimize payroll taxes. The IRS is on the lookout for both 26 TileLetter | November 2017