Differences between S-Corp vs C-Corp in USA

Ebizfiling

Taxation

C-Corp: Double taxation (corporate + dividends) S-Corp: Pass-through taxation (no double tax)

Ownership Limits

C-Corp: Unlimited shareholders S-Corp: Max 100, must be U.S. citizens/residents

Share Classes

C-Corp: Multiple classes allowed S-Corp: Only one class

Investor Appeal

C-Corp: Easier for VC & institutional funding S-Corp: Harder for outside investors

Corporate Formalities

C-Corp: Must follow strict formalities S-Corp: Fewer reporting complexities

Profit Distribution

C-Corp: Flexible per share class S-Corp: Proportional to ownership

Eligibility & Conversion

C-Corp: Open to all; can convert to S-Corp S-Corp: IRS criteria must be met; no foreign/corporate owners

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Register your S Corporation in USA