Taxation

 

 

 

Ownership

 

 

 

Shareholder rights

 

 

C Corp

C corp income is taxed twice, once to the business and once to the shareholder.

C corps have no limit on shareholders and also allows you to bring in foreign investors.

C corp shareholders get the benefit of preferred stock, should the corporation choose to distribute them. Preferred stock may not come with voting rights, but it can include guaranteed dividends.

S Corp

S corp income is taxed once to the shareholder.

For S corps, you can't have more than 100 shareholders and they must be U.S. citizens or permanent residents.

An S corp can only issue common stock because common stock shareholders get voting rights. No one has preferred status—all shareholders are treated equally.