No no. I mean the big business gets taxed. Then the little guy gets taxed again. The corporation gets taxed once then the guy gets taxed again, on the same money.
Only the big contract house would be a sub-C, although this is not necessarily the case. They are also big on going out to lunch to discuss business too. So each bit of money paid out by the original customer would be taxed at most once, since a sub-C is a pass-through. Some guys cheat and take sub-C distributions as profits, so they don’t have to pay Medicare tax.