Talk:C corporation

Incorporation (a state law concept) versus C corporation status (a Federal income tax law concept)

I have made some edits to try to clear up common misconceptions about C corporations and S corporations.

Incorporation itself is done under state law, and the process is generally identical regardless of whether the corporation intends to be a C corporation or an S corporation. The status as C or S is a Federal income tax status, not a function of how the entity is incorporated under state law.

This is an oversimplification, but the "default" rule is that if a corporation is created, that corporation is a C corporation. To be an S corporation instead, you have to meet certain requirements and file something with the IRS called a Form 2553.

By the way, for Federal income tax purposes there are categories other than C or S as well. For example, a non-profit corporation may be treated as a tax exempt corporation for Federal income tax purposes, under some provision of 26 U.S.C. § 501. Again, being incorporated as a non-profit corporation is generally a procedure under state law, not Federal law. Merely being a non-profit corporation does not necessarily make you a tax exempt corporation under section 501. Likewise, other kinds of entities that may not be corporations at all could be tax exempt under section 501. So, it can get pretty complicated. Yours, Famspear 23:00, 20 December 2006 (UTC)

tax rates fixed amounts

From the table you have put in this article, there are fixed amounts for each tax band as well as a %. The fixed amount for 100k is about 22k. the fixed for 75k is about 14k and for 50k $7,500. Are all these fixed amounts added together so if taxable income is 100k the total is 22+14+7.5k? This could be made clearer. Robotics1 (talk) 12:35, 25 January 2012 (UTC)