Yes, there are several strategies entrepreneurs can use to mitigate double taxation:
S Corporation Election: In the U.S., an S Corporation allows profits to pass directly to shareholders, avoiding corporate tax. Shareholders then report income on their personal tax returns. LLC Formation: An LLC (Limited Liability Company) can opt for pass-through taxation, where income is taxed only once at the owner's level. Tax Credits and Deductions: Utilizing available tax credits and deductions can offset tax liabilities and reduce the overall tax burden. International Tax Treaties: For international entrepreneurs, tax treaties between countries can provide relief from double taxation by specifying which country has taxing rights.