C-corporation


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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.

C-corporation

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 ?
The C-corporation tax cut, according to TheStreet.com, would have saved the retailer about $2.5 billion if it had been in effect in 2017.
You'll have less formation paperwork and compliance requirements than with an S-corporation or C-corporation. When you set up your business as an S-corporation or C-corporation, you need to follow a number of internal and external corporate formalities, such as adopting bylaws, holding shareholder and director meetings, filing annual reports, and other requirements to stay in good standing with the state you're incorporated in.
This results from the C-Corporation paying tax at the corporate level on its profits, which are again taxed at the individual level when shareholders receive dividend distributions.
"As the MLPs are valued on yields, their valuations in general--not in every case, but in general--have tended to be higher than a similar set of assets held within a C-corporation structure," he said.
Top US pipeline company Kinder Morgan said it will put all its publicly traded units under one roof in a $70 billion deal, responding to investor concerns about its growth prospects and complicated financial structure.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.The affected units include Kinder Morgan Energy Partners, Kinder Morgan Management, and El Paso Pipeline Partners.
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).
Got a C-Corporation? You'll use Form 355 and pay 9.5 percent on net taxable income, and then your shareholders will pay tax on that income again.
Inc.'s business trade secrets in the public record." He also was distraught that the lower court did not do its job in determining differences between Brewitt as an individual from a C-corporation, and thus he sent the clarification work back to those originally responsible.