S-Corps and C-Corps

Corporations are one of the oldest forms of business entities providing protection to its owners, called Shareholders. Corporations can elect to be taxed as a C-Corporation or an S-Corporation. C-Corporations are often used for larger entities using complex tax strategies. C-Corporations face what has been termed as “double taxation”. This is because the corporation is taxed a corporate tax rate and then the individual shareholders are also taxed at their individual level.

S-Corporations are corporations typically used by smaller businesses. They have certain tax advantages, including the avoidance of the “double taxation” of C-Corporations. S –Corporations are not taxed at the corporate level; only the individual shareholders are responsible to pay tax. Most small business owners face the decision of whether to form an S-Corporation or an LLC. We can help you decide.

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