C CORP

Not sure if a C Corp is for you?

Answer a few quick questions, and our Help Me Choose tool can help you move closer to finding the right business structure fit.

C Corp

LLC + S Corp

Nonprofit

Provides limited liability protection
Provides limited liability protection
Provides limited liability protection
Provides limited liability protection
Provides limited liability protection
Can be for solo business owners
Can be for solo business owners
Can be for solo business owners
Can be for solo business owners
Can be for solo business owners
Can be for businesses with multiple owners
Can be for businesses with multiple owners
Can be for businesses with multiple owners
Can be for businesses with multiple owners
Can be for businesses with multiple owners
Income is reported on business owner’s individual tax return
Income is reported on business owner’s individual tax return
Income is reported on business owner’s individual tax return
Income is reported on business owner’s individual tax return
Income is reported on business owner’s individual tax return
Can apply for 501(c)(3) status in certain circumstances
Can apply for 501(c)(3) status in certain circumstances
Can apply for 501(c)(3) status in certain circumstances
Can apply for 501(c)(3) status in certain circumstances
Can apply for 501(c)(3) status in certain circumstances
Businesses making at least 40K in annual profit may see a tax benefit
Businesses making at least 40K in annual profit may see a tax benefit
Businesses making at least 40K in annual profit may see a tax benefit
Businesses making at least 40K in annual profit may see a tax benefit
Businesses making at least 40K in annual profit may see a tax benefit
Pays owner out a salary for services provided
Pays owner out a salary for services provided
Pays owner out a salary for services provided
Pays owner out a salary for services provided
Pays owner out a salary for services provided
Can issue stock
Can issue stock
Can issue stock
Can issue stock
Can issue stock
Double taxation applies
Double taxation applies
Double taxation applies
Double taxation applies
Double taxation applies
Must appoint a board of directors
Must appoint a board of directors
Must appoint a board of directors
Must appoint a board of directors
Must appoint a board of directors
  • Often used by larger companies with many employees

  • Can have owners who are not U.S. citizens or residents

  • Must appoint officers and maintain a board of directors

  • Most states will require an annual report filing

  • Quarterly tax payments are generally also required

  • Comes with more complicated corporate governance and compliance formalities

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Frequently asked questions

Most traditional corporations like the ones that are traded on the stock market are C Corp. A C Corp is a tax status that is subject to double taxation — the C Corp pays tax on its income and the shareholders pay tax on the dividends they receive from the corporation. The corporate tax rate is less than the individual tax rate.

The main difference in the way the business is taxed. C Corp are taxed twice — the business pays taxes, as do the shareholders on their profits. When a business takes an S Corp election, only the shareholders pay taxes on their profits.


Read on to learn more detail about different business structures.

First, you form a corporation by filing incorporation documents with a state’s Secretary of State’s office. To do that with Block Advisors, you’ll need to choose a business name, appoint directors, file articles of incorporation, create bylaws, ensure you’re keeping accurate books and records, and issue stock. As you operate your business, the corporation’s default federal tax status will be a “C Corp” unless you make a valid S Corp election.

An EIN is an employer identification number and is needed in certain situations. For example, partnerships and corporations are required to have an EIN. Sole proprietorships and LLCs that have employees, pay excise tax, or contribute to a retirement plan also need an EIN. EINs are included with all of our packages.