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C corporation

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This term or phrase is currently an entry in The SmallBusiness.com Business Glossary WIKI. Please help expand this entry into a more detailed description.

A C corporation is a form of corporation that meets the U.S. IRS requirements to be taxed under Subchapter C of the Internal Revenue Code. It is also known as "C corporation" or "C-Corp". Most major companies are incorporated under a C corporation. After the corporation is created it becomes its own entity and has an indefinite lifespan as long as the yearly filing fee is paid.

C corporation vs. S corporation

The main differences between S corporation and C lie in the fact that a C corporation is taxed a Federal Corporate Income tax whereas an S corporation is not. It may also have an unlimited amount of shareholders unlike S corporations, which are limited to 100 shareholders.

See Also

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