From Wikipedia, the free encyclopedia C corporation
C corporation
Taxation International
Financial transaction tax
An aspect of fiscal policy
Currency transaction tax
Policies Tobin tax · Spahn tax
Government revenue Tax equalization · Tax treaty
Tax revenue · Non-tax revenue European Union FTT
Tax law · Tax bracket
Trade
Exemption · Credit · Deduction
Custom · Duty
Tax shift · Tax cut · Tax holiday
Tariff (Import · Export) · Tariff war
Tax advantage · Tax incentive
Free trade · Free trade zone
Tax reform · Tax harmonization
Trade pact
Tax competition · Double taxation
Representation · Unions By country
Medical savings account Tax rates around the world
Tax, tariff and trade Tax revenues as %GDP
Albania · Australia · Bangladesh · Bhutan · Canada ·
Economics
China · Colombia · France · Germany · Greece · Iceland ·
Price effect · Excess burden
India · Indonesia · Iran · Ireland · Israel · Italy · Japan ·
Tax incidence
Netherlands · New Zealand · Pakistan · Palestinian ter-
Laffer curve · Optimal tax
ritories · Peru · Russia · Singapore · South Africa · Swe-
Collection den · Switzerland · Tanzania · United Kingdom · Unit-
Revenue service · Revenue stamp ed States
Tax assessment · Taxable income
Tax lien · Tax refund · Tax shield C corporation refers to any corporation that, under Unit-
Tax residence · Tax preparation ed States income tax law, is taxed separately from its
Tax investigation · Tax shelter owners. It is distinguished from an S corporation, which
Private tax collection · Tax farming is not taxed separately. Most major companies (and many
smaller companies) are treated as C corporations for U.S.
Noncompliance
income tax purposes.
Tax avoidance · Tax evasion
Tax resistance · Tax haven
Smuggling · Black market C corporation vs. S corporation
Unreported employment
Shareholders of a corporation may elect to treat the cor-
Distribution poration as a flow-through entity known as an S corpo-
Tax rate ration. An S corporation is not itself subject to income
Progressive · Regressive tax; rather, shareholders of the S corporation are subject
Proportional to tax on their pro rata shares of income based on their
shareholdings.[1] To qualify to make the S corporation
Types
election, the corporation’s shares must be held by res-
Direct · Indirect · Ad valorem · In rem
ident or citizen individuals or certain qualifying trusts.
Capital gains · Consumption
Unlike corporations treated as S corporations, a corpora-
Dividend · Excise · Georgist
tion may qualify as a C corporation without regard to any
Gift · Gross receipts · Income
limit on the number of shareholders, foreign or domes-
Inheritance (estate) · Land value
tic.
Payroll · Pigovian · Property
Sales · Sin · Stamp · Turnover
Value-added (VAT) Forming a corporation
Corporate profit · Excess profits
In the United States, corporations are formed under laws
Windfall profits · Negative (income) · Flat
of a state or the District of Columbia. Procedures vary
widely by state. Some states allow formation of corpora-
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From Wikipedia, the free encyclopedia C corporation
Taxable Income ($) Tax Rate Of amount over
Over But not over
$0 $50,000 15% $0
50,000 75,000 25% + $7,500 50,000
75,000 100,000 34% + 13,750 75,000
100,000 335,000 39% + 22,250 100,000
335,000 10,000,000 34% + 113,900 335,000
10,000,000 15,000,000 35% + 3,400,000 10,000,000
15,000,000 18,333,333 38% + 5,150,000 15,000,000
18,333,333 — 35% 0
tions through electronic filing on the state’s web site[2] or
very quickly.[3] All states require payment of a fee (often
Tax rates
under USD200) upon incorporation.[4] Corporations are As of 2010, the IRS lists the following tax rate schedule
issued a "certificate of incorporation" by most states up- for "most corporations", except "qualified personal ser-
on formation. Most state corporate laws require that the vice corporations" and certain other cases[9]:
basic governing instrument be either the certificate of See IRS Publication 542, Corporations for details about
incorporation or formal articles of incorporation. Many taxation of corporations.
corporations also adopt additional governing rules
knows as bylaws. Most state laws require at least one di-
rectors and at least two officers, all of whom may be the
Notes and references
same person. Generally there are no residency require- [1] 26 USC 1361-1368..
ments for officers or directors. [2] See, e.g., New Jersey registration.
[3] See, e.g., Delaware Secretary of State FAQs on
incorporation.
Financial statements [4] See, e.g., Delaware fee schedule.
Corporations are not required to issue financial state- [5] 26 USC 301.
ments in the United States. Financial statements may be [6] 26 USC 312.
presented on any comprehensive basis, including an in- [7] 26 USC 302.
come tax basis. There is no requirement for appointment [8] 26 USC 331-346.
of auditors. [9] "Publication 542" (PDF). Department of the Treasury,
Internal Revenue Service. February 2006.
Distributions http://www.irs.gov/pub/irs-pdf/p542.pdf. Retrieved
August 2010.
Any distribution from the earnings and profits of C cor-
porations is treated as dividend for U.S. tax purposes.[5]
Earnings and profits is a tax concept similar to retained
See also
earnings.[6] Exceptions apply to treat certain distribu- • Corporate tax in the United States
tions as made in exchange for stock rather than as divi- • Blocker corporation
dends. Such exception include distributions in complete • S corporation
termination of a shareholder’s interest[7] and distribu-
tions in liquidation of the corporation.[8]
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Categories:
• Corporate taxation in the United States
• Types of business entity
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From Wikipedia, the free encyclopedia C corporation
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