Activity

  • lurongyang replied to the topic S-Corp vs C-Corp in the forum Business 101 6 years, 8 months ago

    S-corps, in my opinion, are those companies who only allows a few members to have a say in running business, the corporate cannot be publicly traded and have thousands of stakeholders like C-corps, but could only be taxed once, which called pass-through tax. These companies are more likely to be of small scale, family-owned, and totally runs domestic business, such as a motel run by a local family, or a local franchise store only seen in a few cities in United States.
    C-corps, on the other hand, could be much bigger in scale because it could be allowed to publicly traded and everyone and social entities could be the shareholders of them. They could expand their business overseas, but it also requires the business owners to pay the tax twice to obtain the profits. Also the losses cannot pass through to the individuals which meaning they cannot waive the tax even though the C-corp company is not making profit. They tend to be huge companies in their area and mostly expand their business overseas, for instance, Coca Cola, Apple, Google and Walmart, etc.