Investopedia

Continue to Site »

C Corporation

Filed Under »
Dictionary Says

Definition of 'C Corporation'

A legal structure that businesses can choose to organize themselves under in order to limit their owners' legal and financial liabilities. C corporations are legally considered separate entities from their owners. In a C corporation, income is taxed at the corporate level and is taxed again when it is distributed to owners.

Investopedia Says

Investopedia explains 'C Corporation'

C corporations are an alternative to S corporations, where profits pass through to owners and are only taxed at the individual level, and limited liability companies, which provide the legal protections of corporations but are taxed like sole proprietorships. While the double taxation of C corporations is a drawback, the ability to reinvest profits in the company at a lower corporate tax rate is an advantage. Most corporations are C corporations.

Articles Of Interest

  1.

    Should You Incorporate Your Business?

    Find out how becoming a corporation can protect and further your finances.

  2. Whom Should Corporations Please?

    Companies balance the interests of owners, customers and employees. Find out who comes out on top.

  3. Corporate Takeover Defense: A Shareholder's Perspective

    Find out the strategies corporations use to protect themselves from unwanted acquisitions.

  4. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

    Corporations may not legally deduct the dividend payments before taxes but there is another approach - a corporate structure called an income trust. Income trusts allow a firm to deduct dividends, ...

  5. Why are corporations so concerned about their stock price?

    When the share price of a company is high or increasing, generally corporations, or more specifically their management teams, are happy about it and there is good reason for it.First of all, ...

  6. Approved: Paying Online Sales Tax

    States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.

  7. Do Personal Income Tax Cuts Foster Economic Growth?

    Studies show that cuts to personal income tax rates will improve tax revenues, but not lead to economic growth.

  8. Best States For Company Headquarters

    Texas, Florida, Virginia and Utah are considered to be some of the best states to do business in. Find out why.

  9. How Paul Ryan's Proposed Plans Will Affect Americans

    Romney's running mate wants to reduce government spending and entitlement programs. What does this mean for the average American?

  10. Countries With The Highest Tax Rates

    Find out how America compares to other nations when it comes to factors such as overall tax burden and total number of hours spent on taxes.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center