Practical Law Glossary Item 1-383-9868 (Approx. 3 pages)
Glossary
C-Corporation
All domestic corporations other than S-corporations are C-corporations. C-corporations are the most common corporate form and generally are subject to two levels of tax on their income:
At the entity level when earned.
At the stockholder level when distributed.
An eligible C-corporation generally can avoid double taxation by electing on formation to be treated as an S-corporation if it meets the Internal Revenue Code (IRC) requirements for an S-corporation election (such as the requirements regarding the number, type and residency of stockholders ) (IRC §§ 1361 and 1362).