In becker , its mentioned tht high income individuals form this type of company to shelter their income by low corporate tax rates(15-25%).

My Q is , IF this company distributes dividend, shareholders will get taxed on this dividend again after 1st taxation at corporate level. So , at the end you are paying the same rate as individuals high tax rate. like say 25% tax paid by corporation first & 15% tax rate (capital gain) paid by individual.  if they will not distribute dividends, then again its subject to penalty. then whts the purpose of forming this entity??