ABSTRACT
A corporation is recognized as a separate legal and taxable entity, and it pays its own taxes to many federal, state, and local taxing agencies. If the corporation is operating internationally, it has the additional problem of complying with the tax laws of foreign countries. Taxes may be levied on income, sales, and property. The federal corporate income tax (filed on Form 1120) is the most important because it often represents the largest tax liability. Thus, it can have a major effect on your financial decisions.
