Business Entity Types
C Corp vs S Corp: Key Tax Differences Every Business Owner Should Know
3:16By ForeignLLCTax
Key Takeaways
- C corps: double taxation; S corps: pass-through taxation
- S corps restricted to U.S. citizens/residents
- Foreign owners should use LLCs instead
- About half of U.S. corporations are S corps
C Corp vs S Corp
C corporations face double taxation (corporate tax + dividend tax). S corporations pass income through to shareholders, taxed only once. S corps are restricted to U.S. citizens/residents — foreign nationals cannot participate.
For Foreign Owners
S corporations are unavailable to foreign nationals. The practical choice is an LLC (most common) or a C corporation (for larger businesses needing corporate structure).
LLCS-CorpC-Corpsole proprietorshippartnership
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