What Is a C Corporation?

A C corporation (or C-corps) is a legal structure of a corporation in which owners or shareholders are taxed separately from the entity. C corporations, the most common of corporations, are also subject to income taxation. Taxation of profits from a business takes place both at the corporate and personal levels, which creates a double taxation situation.

C corporations limit the personal liability of the directors, shareholders, employees, and officers. Thus, the legal obligations of the business cannot become a personal debt obligation of any individual associated with the company. The C corporation continues to exist after a change of ownership and a change in management.Typically, a C Corporation structure is better for larger businesses.

What is an S Corporation?

“S corporation” stands for “Subchapter S corporation”, or sometimes “Small Business Corporation." It’s a special tax status granted by the IRS that allows corporations transfer their corporate income, credits and deductions to their shareholders. In general, S corporations don’t pay income taxes. Instead, the company’s individual shareholders split up the income (or losses) with each other and report it on their own personal income tax returns.S corporation status lets businesses avoid double taxation, which happens when a business is taxed at both the corporate level and at the level of business owner. In the absence of a corporate tax, the S corp “tax rate” is where the level of personal icome of the business owner  falls on the tax bracket.

Keep in mind that “S corporation” is a tax designation, not a type of business entity. You can’t ‘incorporate’ as an S corporation. To become one, you have to apply to the IRS.DOT Filing will be happy to help you with every aspect of starting a successful business. Our team can assist you with filing for any kind of business entity. We will make sure you meet all the legal requirements and your paperwork is in order. We specialized in trucking industry, and we can help you with every step of establishing your trucking company. Obtain a USDOT Number and get an authority to operate, file for a corporation and comply with all the legal aspects easily and without any troubles. 

Call us today at 818-568-0644 and let us know how we can be of help. We are looking forward to assisting you!