what is the difference of a s corp and c corp
The Differences Between a C Corp & an S Corp. An S corporation is a distinctive type of corporate entity that provides special tax advantages to owners of the business. A C corporation, also referred to as a regular corporation, is automatically formed when a business decides to incorporate. S corporations must file paperwork with the Internal Revenue Service, which is not a requirement for C corporations.
A big difference between an S corporation and a C corporation is the way that each entity gets taxed. S corporations are treated as pass-through entities, where taxation passes through to the company's owners, who report their share of profits and losses directly on their personal income tax return.
A C corporation can issue multiple classes of stock, while S corporations cannot issue more than one class of stock. The various stock classes issued by a C corporation may carry various voting and profit privileges for the shareholders of the company.