Whats the difference between the different types of corporate entities?
Types of Corporate Entities C-corporation The most common corporate entity type is the “C” Corporation or General Corporation. This entity is widely used by companies planning to issue large quantities of stock in either a private or public forum as there is no limit to the number of stockholders the company is allowed to have. Because a corporation is a separate legal entity under the law, their personal liability of shareholders is limited to the amount they have invested in the company. The C-Corporation pays taxes on the income it receives. This means that after payroll and other deductions, the C Corporation pays corporate taxes on all profits accumulated throughout its fiscal year. The benefit of this is, the income is taxed at a lower rate than that imposed on a sole proprietor or self-employed person. Also, the C-Corporation has its own tax life, meaning; it has the ability to continue on forever and its stock passed on to others with ease. C-Corporations can also cover items s
