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 ?
brief descriptionMedical Centre C-Corps office and procedure rooms with the furniture installation and maintenance after the warranty period.
The number of businesses operating as c-corps has steadily declining ever since.
Premiums for long term care insurance are deductible for S-corps and C-corps.
These losses can immediately be passed through to S-corp investors, while C-corps must carry losses forward to offset future corporate income.
Cons: Active owner must be paid as an employee, C-Corps cost more to set up and file taxes for, and losses are deductible by the corporation only.
Within the tax area, engagements for individuals account for 59% of total tax claims, while those for C-Corps and S-Corps account for 25% and 12%, respectively.
Butler lists his clients as "individuals, C-corps, S-corps.
Morgan Stanley analyst Michael Cyprys said he sees an opportunity for Alternative Asset Managers to unlock value by converting to C-corps, as shifting from a partnership structure could help alleviate some tax reporting complexities and expand the universe of eligible investors.
Increased parity of tax rates for companies organized as C-corps and those organized as S-corps or who file their business taxes on their individual tax returns will help small businesses by decreasing the disadvantage under which they currently operate.
WMD founder and CIO William Daugherty added, The number and market value of public securities in real estate-related companies, such as REITS, C-corps and others, both domestically and around the world, are proliferating and too big to ignore.
Of course, the problem with C-corps is double taxation.
Smith suggested that it would be more difficult to find additional bank debt until hotel REITs and C-Corps demonstrate their ability to term-out maturing short-term debt.