C Corporation

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A type of business that may be created by a group of professionals wishing to become incorporated
Pros Less troublesome in daily financial management, minimises current net income—as the income is paid to the physicians as compensation—and minimises current tax liability
Cons At time of sale, up to 60% of the proceeds are paid in taxes by the corporation and by the individual shareholder
References in periodicals archive ?
The C Corporation was a holding company that held over 80% of the stock of five corporations engaged in retail auto sales through six dealerships.
1363(d) will apply, and recapture of LIFO benefits will be triggered, if two conditions are met: (1) a C corporation elects S status under Sec.
1363(d) mandates recapture of the LIFO reserve on the conversion of a C corporation to an S corporation.
Does the answer depend on whether or not there is previously accumulated C corporation earnings and profits?