C corporation
Definition
Any corporation that does not qualify and elect to be an S corporation under the Internal Revenue Code. Unlike S corporations, C corporations must always pay income taxes directly to the federal government.
See 26 U.S.C. § 11 and 26 U.S.C. § 1361(a)(2).
Definition from Nolo’s Plain-English Law Dictionary
Common business slang to distinguish a regular corporation, whose profits are taxed separate from its owners under subchapter C of the Internal Revenue Code, from an S corporation, whose profits are passed through to the shareholders and taxed on their personal income tax returns under subchapter S of the Internal Revenue Code.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm
