|An aspect of fiscal policy|
C corporation refers to any corporation that, under United States federal income tax law, is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies (and many smaller companies) are treated as C corporations for U.S. federal income tax purposes.
C corporation vs. S corporation 
Shareholders of a corporation may elect to treat the corporation as a flow-through entity known as an S corporation. An S corporation is not itself subject to income tax; rather, shareholders of the S corporation are subject to tax on their pro rata shares of income based on their shareholdings. To qualify to make the S corporation election, the corporation's shares must be held by resident or citizen individuals or certain qualifying trusts. A corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.
Forming a corporation 
In the United States, corporations are formed under laws of a state or the District of Columbia. Procedures vary widely by state. Some states allow formation of corporations through electronic filing on the state's web site or very quickly. All states require payment of a fee (often under USD200) upon incorporation. Corporations are issued a "certificate of incorporation" by most states upon formation. Most state corporate laws require that the basic governing instrument be either the certificate of incorporation or formal articles of incorporation. Many corporations also adopt additional governing rules known as bylaws. Most state laws require at least one director and at least two officers, all of whom may be the same person. Generally there are no residency requirements for officers or directors.
Financial statements 
Corporations are required to issue financial statements in the United States. Financial statements may be presented on any comprehensive basis, including an income tax basis. There is no requirement for appointment of auditors, unless the corporation is publicly traded and thus subject to the requirements of the Sarbanes-Oxley Act.
Any distribution from the earnings and profits of a C corporation is treated as a dividend for U.S. income tax purposes. "Earnings and profits" is a tax law concept similar to the financial accounting concept of retained earnings. Exceptions apply to treat certain distributions as made in exchange for stock rather than as dividends. Such exceptions include distributions in complete termination of a shareholder's interest and distributions in liquidation of the corporation.
Tax rates 
|Taxable Income ($)||Tax Rate||Of amount over|
|Over||But not over|
|50,000||75,000||$7,500 + 25%||50,000|
|75,000||100,000||13,750 + 34%||75,000|
|100,000||335,000||22,250 + 39%||100,000|
|335,000||10,000,000||113,900 + 34%||335,000|
|10,000,000||15,000,000||3,400,000 + 35%||10,000,000|
|15,000,000||18,333,333||5,150,000 + 38%||15,000,000|
See IRS Publication 542, Corporations for details about taxation of corporations.
Notes and references 
- 26 USC 1361-1368..
- See, e.g., New Jersey registration.
- See, e.g., Delaware Secretary of State FAQs on incorporation.
- See, e.g., Delaware fee schedule.
- 26 USC 301.
- 26 USC 312.
- 26 USC 302.
- 26 USC 331-346.
- "Publication 542" (PDF). Department of the Treasury, Internal Revenue Service. February 2006. Retrieved August 2010.