Corporation

A corporation is a business entity that functions as a distinct legal “person,” one that is separate from its owners and offers them protection from personal liability for business debts. There are two different kinds of corporations: a C-corporation, which is a separate taxpayer; and an S-corporation, which is a “pass-through” tax entity, meaning federal income taxes are not paid at the company level, but rather the profits and losses of the business pass through to its owners, who report them on their personal tax returns. For more information see What is a Corporation? Formation, Management, and Taxation