Talk:C corporation

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Business and economics portal v • d • e This article is within the scope of WikiProject Business, a collaborative effort to improve the coverage of Business on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.  Stub  This article has been rated as Stub-Class on the project's quality scale.  Low  This article has been rated as Low-priority on the project's priority scale. Comments: edit  · history  · watch  · purge Contents 1 Class 2 Priority 3 Class 4 Priority 5 Incorporation (a state law concept) versus C corporation status (a Federal income tax law concept) [edit] Class I classified this as a stub because it it barebones.EECavazos 04:42, 23 October 2007 (UTC) Further content has been added so I took the initiative to class this as a start class. This article could use a section on history.EECavazos (talk) 20:17, 12 May 2008 (UTC) [edit] Priority I put the priority on this because it is a national concept but an important one nonetheless because a business person may want to learn what a c corp is as opposed to a s corp.EECavazos 04:42, 23 October 2007 (UTC)

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v • d • e This article is within the scope of WikiProject Taxation, a collaborative effort to improve the coverage of tax-related articles on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.  Start  This article has been rated as Start-Class on the project's quality scale.  Mid  This article has been rated as Mid-priority on the project's priority scale. Comments: edit  · history  · watch  · purge [edit] Class I classified this as a stub because it it barebones.EECavazos 04:42, 23 October 2007 (UTC) Further content has been added so I took the initiative to class this as a start class. This article could use a section on history.EECavazos (talk) 20:17, 12 May 2008 (UTC) [edit] Priority I put the priority on this because it is a national concept but an important one nonetheless because a business person may want to learn what a c corp is as opposed to a s corp.EECavazos 04:42, 23 October 2007 (UTC)

[edit] Incorporation (a state law concept) versus C corporation status (a Federal income tax law concept)

I have made some edits to try to clear up common misconceptions about C corporations and S corporations.

Incorporation itself is done under state law, and the process is generally identical regardless of whether the corporation intends to be a C corporation or an S corporation. The status as C or S is a Federal income tax status, not a function of how the entity is incorporated under state law.

This is an oversimplification, but the "default" rule is that if a corporation is created, that corporation is a C corporation. To be an S corporation instead, you have to meet certain requirements and file something with the IRS called a Form 2553.

By the way, for Federal income tax purposes there are categories other than C or S as well. For example, a non-profit corporation may be treated as a tax exempt corporation for Federal income tax purposes, under some provision of 26 U.S.C. § 501. Again, being incorporated as a non-profit corporation is generally a procedure under state law, not Federal law. Merely being a non-profit corporation does not necessarily make you a tax exempt corporation under section 501. Likewise, other kinds of entities that may not be corporations at all could be tax exempt under section 501. So, it can get pretty complicated. Yours, Famspear 23:00, 20 December 2006 (UTC)