C Corporation


Also found in: Financial, Wikipedia.
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) mandates recapture of the LIFO reserve on the conversion of a C corporation to an S corporation.
Specifically, an eligible C corporation could convert to S status and avoid gain recognition if corporate assets were retained for a 10-year period after the conversion date.
A calendar-year C corporation (C) had been on the LIFO inventory method through 1993.
Additionally, if a C corporation has an outstanding obligation that satisfies the definition of straight debt, but is considered equity under general principles of tax law, the obligation would not be treated as a second class of stock if the C corporation converts to S status.
Does the answer depend on whether or not there is previously accumulated C corporation earnings and profits?