Generally, taxes are considered the biggest and most important difference between these two types of corporations. C-corps are subject to the corporate tax rate, whereas S-corps allow for pass-through taxation—meaning business profits and losses are reported on the owners' personal income tax returns.

Why would you choose an C corporation?

Why choose a c corporation? C corporations provide limited liability protection to owners, who are called shareholders, meaning owners are typically not personally responsible for business debts and liabilities.

Why C corp is better than S corp?

C corporations can have foreign owners, unlimited shareholders, and multiple classes of stock. Winner: C corps. S corps are suited for smaller, domestic businesses that want to treat all owners the same way. C corps give companies unlimited growth potential and flexible options for ownership and profit distribution.