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What is the Difference Between “S” and “C” Corporations?

April 26, 2017corporations difference s

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What is the Difference Between “S” and “C” Corporations?

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The primary difference has to do with taxes. Simply put, a “C” corporation is treated as a separate tax entity from the shareholders. With an “S” corporation, the financial results “pass through” to the shareholders. The designation of either corporation is something that occurs with the IRS, not the Secretary of State.