New Federal Requirement: Starting January 1, 2024, most business entities in the US will need to report Beneficial Ownership Information.


Diffrence Between C Corporation And S Corporation

Asked by: Narender Pal Singh  — 6 October, 2013


What Is the Diffrence Between C Corporation And S Corporation

Answered by: admin  — 6 October, 2013

Dear Narender,

The main difference between ‘C’ and ‘S’ Corporation is the tax structure. A C-Corporation generally pays income taxes on the company income, then pays its shareholders dividends, which they pay personal income taxes on. This is commonly referred to as ‘dual-taxation’.

An S-Corp is a pass-through entity similar to an LLC. This means the company does not pay corporate income taxes, instead passes the income through the entity to the owners, and they pay personal income taxes on that income. S-Corp is limited to 100 shareholders, all of whom must be physical U.S. persons (with a few exceptions).

You can click here for a side-by-side comparison of the different entity types.

Ask Incorporation Question
Please enter your full name
Please enter your email address
Please select your phone number
Please select
Please enter text message
Begin Web-Stat code v 6.0