C-Corporation

A C-Corporation, prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. 

• Taxed Twice the business pays taxes by corporate level, and shareholders pay on income received.

• There are no restrictions regarding Citizenship, Residency, or how many Share Holders can own.  
• Owners my get Preferred Stock that comes without voting rights but Priority to any dividends before the Common shareholders have access

S-Corporation

S-Corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level. 

• Taxed Once by Shareholders on profits Received
• Limited to 100 Shareholders that must be U.S. citizens or resident aliens, and can include individuals, certain trusts, and estates 
• Owners Get Common Stock that comes with Voting rights
• Partnerships, other corporations, and non-resident alien individuals cannot be shareholders