How is a C corp taxed?

Unlike S corps which allow pass-through taxation, C corps are traditional entities that are taxed at the corporate level. This means that any profits realized by the C corp are taxed, and then any profit distributions to the shareholders are then taxed on a personal level.

Although double taxation may seem like a burden, C corps do have their advantages. In general, corporate tax rates tend to be lower than personal tax rates. Also, C corps are capable of retaining profits instead of being required to pass them on to shareholders.

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