C_corporation

Companies law
Basic forms:
Sole proprietorship
Partnership (General · Limited · LLP)
Corporation (LLC · S · C)
Cooperative
United States:
Business trust LLLP · Series LLC Delaware corporation Nevada corporation
European Economic Area, including European Union:
SE · SCE
United Kingdom / Commonwealth / Ireland:
Limited company (By shares · By guarantee) (Public · Proprietary) Community interest company
Civil law countries:
AB · AG · ANS · A/S · AS
K.K. · N.V. · OY · S.A. · GmbH
Doctrines
Corporate governance
Limited liability · Ultra vires
Business judgment rule
Internal affairs doctrine
De facto corporation and corporation by estoppel
Piercing the corporate veil
Rochdale Principles
Related areas of law
Contract · Civil procedure

A C corporation (or C corp.) is a corporation in the United States that, for Federal income tax purposes, is taxed under 26 U.S.C. § 11 and Subchapter C (26 U.S.C. § 301 et seq.) of Chapter 1 of the Internal Revenue Code.A C corporation may also be subject to a separate Federal income tax called the Alternative Minimum Tax. Most major companies (and many smaller companies) are treated as C corporations for Federal income tax purposes.

C corporation vs. S corporation

The income of a C corporation is taxed, whereas the income of an S corporation (with a few exceptions) is not taxed under the Federal income tax laws.

Unlike corporations treated as S corporations, a corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.

Steps to forming a C corporation

According to Nolo, a prospective creator of a C corporation mustNolo. How to Form a Corporation.

1. Choose an available business name that complies with their state\'s corporation rules;
2. Appoint the initial directors of their corporation;
3. File formal paperwork, usually called "articles of incorporation," and pay a filing fee that ranges from $100 to $800, depending on the state where they incorporate;
4. Create corporate "bylaws," which lay out the operating rules for their corporation;
5. Hold the first meeting of the board of directors;
6. Issue stock certificates to the initial owners (shareholders) of the corporation; and
7. Obtain licenses and permits that may be required for their business.

Impact

Since corporations are state entities and the C corporation status refers to the tax treatment of these corporations by the federal government, the C corporation\'s impact is mostly relegated to the tax realm. The impact of double taxation, the taxation of the corporation\'s income and the separate taxation on their dividends, constitutes the impact of the C corporation treatment. C corporations are subject to this double taxation unlike S corporations and most other business entities taxed by the federal government.

Taxable income list

As of February 2006, the IRS lists the following tax rate schedule for "[m]ost corporations", except "qualified personal service corporations" and certain other casesDepartment of the Treasury, Internal Revenue Service (February 2006). Publication 542.:

Notes and references

See also

• Blocker corporation
• S corporation

External links

• Corporations FAQ at nolo.com

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