Financial Poise

C Corporation

  • October 5, 2021
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A C Corporation conducts business, realizes net income or loss, pays taxes, and distributes profits to shareholders. The profit of a C corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This results in double taxation; the corporation does not get a tax deduction when it distributes dividends to shareholders and shareholders generally cannot deduct any loss of the corporation.