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 ?
Under applicable tax law and regulations for C-corporations, distributions to shareholders in excess of current or accumulated earnings and profits should be reported as returns of capital instead of qualified dividends.
Keep in mind: companies organized as c-corporations pay income tax as well.
The Association has also published the 2012 edition of the Long-Term Care Insurance Guide For Accountants And CPAs designed to give detailed explanations of how the tax rules handle premiums for individuals, self-employed, Limited Liability Companies and C-Corporations.
The Small Business Jobs Act doubles the tax deduction for start-up companies (from $5,000 to $10,000), allows many small businesses to carry back their general business credits to offset five years of taxes, and changes the law to reduce taxes for C-corporations that became S-corporations.
According to the Secretary of State's office, of the 402,918 businesses in Washington, I38,236 are active profit corporations - including C-corporations, LLCs and others.
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.
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).
Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations, Partnerships, Non-Profits and Professional Corporations.