What is the Difference Between a "C" Corporation and an "S" Corporation?
Generally, a "C" corporation, for tax purposes, is considered a completely separate entity from its owners. It is a complex structure, subject to double taxation - Corporate and Shareholder levels (profits and dividends).
Generally, an "S" corporation may elect not to be subject to federal corporate income tax. The shareholders, however, claim the corporation's profit (dividends) and losses as part of their personal income tax. The Internal Revenue Service imposes specific requirements upon each.
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For more information, see here: https://www.irs.gov/businesses/small-businesses-self-employed/business-structures
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