There are confusion from people about the difference of the C Corporation and the S Corporation in Florida. When you are filing for the Florida Corporation, you will get the idea of how to form and the difference between C and S Corporation. You will also know the certain restrictions that are applied on S corporation and not on C Corporation. Click here if you want to know more info. An individual who wanted to file to be incorporated, you must know the difference. Here are the things that make C differ from S.
- Florida Taxation. The S corporation is sometimes do not recognize by some states. There are states that treat this corporation the way the federal government treat it. The S corporation is for federal tax only and is not treated as state tax. All corporations that are not S are treated as regular C Corporation.
- Federal Taxation. The C Corporation is taxed as separate and must report its income and losses to the corporation tax. This Corp pays for the tax corporation. The S Corporation with one shareholder will file for K-1 tax return. The corporation will not pay for the income tax.
- Employee Benefits. Both corporations have the privilege to have employee benefits that can be deducted on the salary of the employees. The employees are tax-free. The tax-free is not as beneficial for the S Corporation where shareholders hold more than 2%.
- Ownership. All the shareholders of the S Corporation must be a citizen of the US or lived on the place. While the C Corporation has numerous stocks while the S Corp has limited to only one class stock.
- Corporate Size. The C Corp offers more flexibility in this type than the S Corporation. That is why they most preferred the S Corp where large numbers of shareholders choose them.
These are the things that makes S different from C. There are more difference that you can only find when you research about them.