Even though both are corporations, both corporations have traits that differentiate their structure and way to conduct business. So, what is the difference between S-Corp vs C-Corp.
Formation
Taxation
Ownership
Each Corporation has its advantages and disadvantages when it comes to their Formation, Taxation and Ownership structure. However, they both fulfill their role depending in what type of company it is.
For a Small-Business looking to avoid double income taxation an S-Corp might be the best option.
For a Big-Company aspiring to be bigger, get more funding, more shareholders, etc., a C-Corp might be the best options.
Resources:
- https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations#:~:text=In%20order%20to%20become%20an,where%20to%20file%20the%20form.
- https://www.investopedia.com/terms/c/c-corporation.asp#:~:text=1%20Although%20requirements%20vary%20across,operation%20of%20the%20entire%20corporation.
- https://www.patriotsoftware.com/blog/accounting/what-is-difference-between-s-corp-c-corp-how-convert/
- https://www.nav.com/blog/s-corp-vs-c-corp-whats-the-difference-423709/#:~:text=The%20biggest%20difference%20between%20C,company%20revenue%20as%20personal%20income.
- https://www.irs.gov/businesses/small-businesses-self-employed/forming-a-corporation
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