C Corporation
Definition
A US corporation taxed as a separate entity, paying corporate income tax on its profits, with shareholders then taxed on dividends — the classic double taxation. It contrasts with pass-through structures.
Related Terms in US Tax
S Corporation
A US corporation that elects to pass income, deductions and credits through to shareholders, who report them on their individual returns, avoiding corporate-level income tax. Eligibility rules and an election are required.
LLC Taxation
How a US limited liability company is taxed, which is flexible: a single-member LLC is taxed by default as a sole proprietorship, a multi-member LLC as a partnership, and either can elect corporate or S-corp treatment.
Pass-Through Entity
A business whose income is not taxed at the entity level but passes through to the owners, who report it on their own returns. Sole proprietorships, partnerships, S corporations and most LLCs are pass-throughs.
Form 1099-R
A US information return reporting distributions from pensions, annuities, retirement plans and similar accounts, used by recipients to report retirement income.
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