What is the difference between C Corp and S Corp


S Corporations and C Corporations have a number of differences. From a tax perspective the key differences are:

S Corporations

  • Limited to one class of stock
  • Limited to 100 shareholders
  • All shareholders must be US individuals or certain trusts and estates
  • Generally no income tax at the corporation level
  • Taxable income flows through to the shareholders and tax is assessed at the individual level

C Corporations

  • Can have different classes of stock
  • No limit on the number of shareholders
  • Shareholders can be just about anyone or anything: individuals (foreign or US), partnerships, other corporations, trusts, estates or non-profit entities
  • Income tax is assessed at the corporate level