Question

Your friend, Hannah, is considering setting up a corporate entity type for her business. You know the main characteristic that distinguishes an S Corporation from a C Corporation. What is that difference

Answer 1

Answer:

The answer is that the way the are obligated under law regarding the taxes is different and that is essentialy to know how to manage the corporation.

Explanation:

On the one hand, the "C" Corporation is a type of business structure from legal points of view under which the entity is considered to be taxed separatedly from the business' owners. Meanwhile in the other hand, the "S" Corporation is in the opposite a type of business structure which main characteristic is that the company under this form is taxed not separately from the business' owners and therefore that in this case there is only one taxation when it comes to legal terms while in the other case there are two. And that is the major difference between the both of them.