&gt;&gt; Startups and small businesses in the United States organized as &quot;S corporations&quot; also pay zero taxes<p>This is a misleading statement. S corporations are pass-through entities. In other words, all profits they make get passed through to their shareholders as income, who then pay taxes on their personal tax returns at their personal income tax rates. So technically the S corp is paying zero taxes, but only because they&#x27;re being paid elsewhere by the owners.