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 ?
This is because in the 1930s, 40s, and 50s, the only business forms available were sole proprietorships, partnerships and c-corporations, and since only the c-corp provided protection to shareholders from personal liability for company debts, most businesses of any size were c-corps.
Dealers in real estate are not eligible for installment sale treatment, and C-corporations must carefully analyze alternative minimum tax (AMT) consequences as installment sales do not qualify for deferral in calculating C-corporation AMT liabilities.
Indeed, the corporate kicker applies only to C-corporations - businesses that are taxed separately from their owners - that pay more than the corporate minimum tax: a decided minority of Oregon-based businesses.
C-corporations with annual revenues under $5 million (and in some cases up to $75 million) are exempt.
In this position, Spano is responsible for preparing financial statements as well as year-end and annual accounting for various clients including S-corporations, C-corporations, partnerships and individual companies.
Gordon provides audit, compilation, review, tax accounting and miscellaneous consulting services to not-for-profit organizations and closely-held businesses including S-corporations, limited Liability companies, partnerships, C-corporations and sole proprietors.
Rather, the business income or loss is passed through directly to its shareholders, avoiding the dual level of tax that applies to C-corporations.
Fitch Ratings anticipates that the ruling could result in the creation of new MLPs in the chemicals sector, as firms with assets that generate qualifying income under the new structure may seek to take advantage of the ruling, given the tax advantaged status of MLPs and differences in valuations between MLPs and comparable C-corporations.
Vcorp's experienced and knowledgeable staff has had a hand in the growth of thousands of new businesses including: LLCs, S-Corporations, C-Corporations, Partnerships, Non-Profits and Professional Corporations.
So powerful are LLC's that they have diminished the importance of limited partnerships, family limited partnerships, C-corporations, S-corporations and land trusts.
Far greater effects would be felt by C-corporations, the structure generally favored by larger businesses.
Defer Year-End Bonuses: Accrual basis C-corporations can deduct a current year bonus not actually paid to an employee if: (a) the employee does not own more than 50% in value of the corporation's stock, (b) the bonus is properly accrued on its book before the end of the current tax year, and (c) the bonus is actually paid within the first 2 1/2 months of 2002.