C Corporations

(noun)

any corporation that, under United States federal income tax law, is taxed separately from its owners

Related Terms

  • S corporation
  • shareholder
  • dividends

Examples of C Corporations in the following topics:

  • Types of Corporations

    • Four main types of corporations are designated as C, S, limited liability companies, and nonprofit organizations.
    • C corporation refers to any corporation that, under United States federal income tax law, is taxed separately from its owners .
    • A C corporation is distinguished from an S corporation, which generally is not taxed separately.
    • A C corporation has no limit on the number of shareholders, foreign or domestic.
    • Like a C corporation, an S corporation is generally a corporation under the law of the state in which the entity is organized.
  • Corporate Taxes

    • A C corporation refers to any corporation that is taxed separately from its owners.
    • Although vastly outnumbered by sole proprietorships and partnerships, most of the largest companies in the U.S. are C corporations.
    • Owners of C corporations are personally protected from any liability of the company - an idea known as the corporate veil.
    • In return, the earnings of a C corporation are taxed both on the entity level and the individual level.
    • However, owners enjoy the same limited liability awarded to C corporations.
  • S-Corporations (S-Corps)

    • S status combines the legal environment of C corporations with partnership-like federal income taxation.
    • Like a C corporation, an S corporation is generally subject to the laws of the state in which it is organized.
    • Unlike a C corporation, an S corporation is not eligible for a dividends received deduction, nor is it subject to the ten percent of taxable income limitation applicable to charitable contribution deductions.
    • In order to be eligible for S corporation status, a corporation must meet certain requirements:
    • However, certain trusts, estates, and tax-exempt corporations, notably 501(c)(3) corporations, are permitted to be shareholders.
  • Limited Liability Companies (LLCs)

    • For tax purposes, an LLC can be registered as a partnership or sole proprietorship (and a corporation even though it is not a corporation for other purposes).
    • For tax purposes, an LLC can be registered as a partnership or sole proprietorship (and even a corporation even though it is not a corporation for other purposes).
    • An LLC, although a business entity, is a type of unincorporated association and is not a corporation (calling it a limited liability corporation is incorrect).
    • choice of tax regime: an LLC can choose to be taxed as a sole proprietor, partnership, S or C corporation;
    • pass-through taxation (i.e., no double taxation), unless the LLC elects to be taxed as a C corporation;
  • References

    • Norwood, NJ: Ablex Publishing Corporation.
    • C.: U.S.
  • US legal issues

    • Corporations must also submit identification and governing documents such as Articles of Incorporation and By-Laws.
    • Corporate entities are generally required to be kept in active status through annual updates to a regulatory authority.
    • Corporate entities may vary in numbers of owners from a single shareholder to an unlimited number.
    • For example, US corporations with publicly traded shares are regulated by the US Securities and Exchange Commission.
    • The corporation may employ workers and engage independent contractors as needed to increase skills available.Corporations are required, however, to acknowledge formally (in a written document) the individuals who are approved to engage in financial transactions on behalf of the entity.
  • References

    • C., Soloway, E., Marx, R.
    • C. (1994).
    • Norwood, NY: Ablex Publishing Corporation.
  • Pros and Cons of a Corporation

    • The corporation is one type of business structure.
    • Similarly, the corporation does not cease to exist with the death of shareholders, directors, or officers of the corporation.
    • Another benefit of the corporate structure is that, in the United States, corporations are generally taxed at a lower rate than are individuals.
    • S corporations are merely corporations that elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.
    • Also, certain corporate penalty taxes (e.g., accumulated earnings tax, personal holding company tax) and the alternative minimum tax do not apply to an S corporation.
  • Summary and references

    • Carroll, Archie. " A Three Dimensional Conceptual Model of Corporate Social Performance. " Academy of
    • "Corporate Social Responsibility: Will Industry Respond to Cut-Backs in Social Program Funding?
    • Perry, Anne C.
    • Prahalad, C.K. and Stuart L.
    • "Corporate Scandal Shakes India. " Wall Street Journal, A-1, 2009.
  • Corporations and Corporate Power

    • Corporations have powerful legal rights, and some have revenues that exceed the revenues of sovereign nations.
    • Once incorporated, a corporation has artificial personhood everywhere it operates, until the corporation is dissolved.
    • A multinational corporation (MNC) is a corporation that either manages production or delivers services in more than one country .
    • Anti-corporate advocates express the commonly held view that corporations answer only to shareholders, and give little consideration to human rights, environmental concerns, or other cultural issues.
    • Multinational corporations are important factors in the processes of globalization .
Subjects
  • Accounting
  • Algebra
  • Art History
  • Biology
  • Business
  • Calculus
  • Chemistry
  • Communications
  • Economics
  • Finance
  • Management
  • Marketing
  • Microbiology
  • Physics
  • Physiology
  • Political Science
  • Psychology
  • Sociology
  • Statistics
  • U.S. History
  • World History
  • Writing

Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.