C Corporation

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C Corporation

A corporation that elects to be taxed as a corporation. The C corporation pays federal and state income taxes on earnings. When the earnings are distributed to the shareholders as dividends, this income is subject to another round of taxation (shareholder's income). Essentially, the C corporations' earnings are taxed twice. In contrast, the S corporation's earnings are taxed only once.

C Corporation

A business that is legally completely separate from its owners. Most publicly-traded companies (and all major ones) fall under this classification. For United States tax purposes, C corporations are required to pay income taxes on their profits. The advantage to a C corporate structure is the fact that, unlike S corporations, there is no limit to the number of shareholders. A disadvantage is the fact that, because a C corporation is taxed itself and its individual shareholders are taxed on dividends, it is subject to double taxation.
References in periodicals archive ?
With C-corporations, business profits are double-taxed (taxed at the business tax rate when they're earned and taxed again when distributed as shareholders' dividends).
How well do proxies for S- and C-corporations predict failure?
This is because in the 1930s, 40s, and 50s, the only business forms available were sole proprietorships, partnerships and c-corporations, and since only the c-corp provided protection to shareholders from personal liability for company debts, most businesses of any size were c-corps.
Chairman Rangel's plan targets large corporations, those that file taxes as C-corporations.
Gordon provides audit, compilation, review, tax accounting and miscellaneous consulting services to not-for-profit organizations and closelyheld businesses including S-corporations, limited Liability companies, partnerships, C-corporations and sole proprietors.
While C-corporations pay corporate income tax on the profits they generate, taxes are deducted from the individual stockholders of the S-corporation.
In just a little more than 300 pages, this work impressively covers a wide range of topics from individual tax preparation and planning to estates, trusts, IRAs, S-corporations, C-corporations, partnerships, business income, and investment gains and losses.
Personal service corporations, S-corporations and C-corporations with gross receipts of less than $5 million also can use the cash method of accounting.
Charitable contribution rules would become the same as for C-Corporations.
At the same time, shareholder-friendly activity has increased sharply, particularly spinoffs of non-refining business segments into separate C-corporations and tax-advantaged master limited partnerships (MLPs).
Tapogna said that Measure 97 is unfair because it applies only to companies organized as C-corporations.
To qualify, the partners must include only individuals, C-corporations, foreign entities that if domestic would be treated as C-corporations, S-corporations, and estates of individuals.