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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.


A typical corporation that pays taxes on its income at the corporate level and then the shareholders are taxed on dividends distributed to them.Contrast with S-corporation,which has no taxes at the corporate level.

References in periodicals archive ?
Music Charts Magazine is a registered trademark, a C-Corporation and rated "A+" by the Better Business Bureau.
When property is held in a C-Corporation, if the owner sells the corporation vs.
The oil and gas pipeline company said it would shed the tax-advantaged legal structure it had popularized during the US shale boom, the Master Limited Partnership (MLP), and fold its units into one company with a market capitalisation of $92 billion organised as a C-corporation.
C-Corporation has a loss carryforward of approximately $1,300,000.
For a C-corporation, the distribution of the policy is also a taxable event for the departing shareholder.
C-corporation status offers few benefits but substantial drawbacks for the typical private business owner.
At the same time you set up a C-corporation whose stock will be bought by your new 401K plan (the new 401K actually owns the C-corporation).
Step 1: A new C-corporation is established in the state where the franchisee will be doing business.
S-Corporation: This is basically a C-corporation that has elected a special tax treatment with the IRS.
And several C-corporation downsides, such as excess compensation, personal holding company tax and unreasonable accumulation of earnings are generally not problems for S-corporations.
In 2008, FTA was incorporated as an C-corporation in the state of Delaware, and its scope broadened to include maintenance and logistical support for a variety of military and governmental agencies programs in aviation.
NYSE: MIE) (the "Fund") announced the completion of the previously disclosed change in the Fund's tax status from a regulated investment company to a taxable C-Corporation under the Internal Revenue Code.