How is a C Corp different from an S Corp. Can you explain the tax differences in C Corp Vs S Corp?
C Corporations are separately taxable entities. A corporate tax return is filed reporting all the profits and losses and all the profits are taxed at the corporate tax rate. C Corporations may face double taxation as profits are taxed at corporate level and dividends paid to shareholders are taxed at their personal income tax level. This is the biggest difference between C Corp Vs S Corp from a tax perspective. C Corporations file their tax return using Form 1120 or 1120A. They may be liable for employment taxes and estimated tax payments.
