C Corporation

(redirected from C corporations)
Also found in: Financial.
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 ?
C was a holding company that held stock in other C corporations.
1374 was not being achieved for former C corporations that used LIFO; a taxpayer that experienced rising acquisition costs would seldom, if ever, experience a decrease in its LIFO reserves.
Without such relief, C corporations sponsoring ESOPs would effectively be prevented from maintaining a SESOP after converting to S status, because they would be required to make in-kind distributions of employer securities and could quickly violate the 75-shareholder requirement.
Subchapter C applies to C corporations and, generally, to S corporations (under Sec.