C Corporation Taxes

C Corporations file IRS form 1120 to report corporate income to the Internal Revenue Service. The IRS taxes company profits at corporate tax rates and dividends paid to shareholders at individual tax rates. For this reason, you may hear tax professionals refer to "double taxation" of a C Corporation.

C Corporations can elect "pass-through" taxation by applying to the IRS for status as a Subchapter S Corporation. You can file for this special tax status by filing Form 2553. This status allows company profits or losses to be reported on the shareholders' personal returns.

Form your C Corporation online or contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440.