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:

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).

For more information about C-corporations, see Practice Notes, Choice of Entity: Tax Issues and Taxation of Corporations.