C-Corporations vs. S- Corporations The decision regarding the classification of the business entity might have a significant impact on its financial results. The differences between the types of the business entities stem from the impact of tax costs and ownership structure specifics. C-Corporations and S-Corporations are amongst the primary choices when it comes to selection of the business entity type. These names stem from the Subchapter C and Subchapter S of the Internal Revenue Service (IRS) Internal Revenue Code (Legal Infromation Institute, 2017). Many companies review their business entity class on the annual basis to ensure it suits their business structure and minimizes relevant costs. Therefore, it is essential to determine the main advantages and disadvantages of C-Corporations and S-Corporations, pertaining to the companies, their stockholders, lenders, management, and employees. The share of C-Corporations has declined significantly over the past three decades. Their share has fallen from 16 percent in …show more content…
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