Many business owners asked about the difference between the S and C Corporations in Florida. In terms of filing for the Corporation, you will eventually come across the differences of the two. But if in case you wanted to know a little bit of information before the process, you can research it through many websites such as in this article. You can see the different restrictions that are only applied to S Corp and are not implemented in C Corp. At Sunbiz.org you can find all the details you needed. For a company who wanted to be on a Corporation must know the all the differences and some of the similarity of these corporations to know what will fit for the company. Here are some of them:
- The Federal Tax. The C Corp is taxed excluded but income and losses are reported to the corporation’s taxation. This type will pay for the corporation tax and is not as per individual. The S Corp that has more than one shareholder will have to file for the K-1 tax return. The paying of tax is individual and not from the corporation income tax.
- The Florida Tax. All corporations that do not belong to the S Corp are treated by the Federal as regular C Corporation. Sometimes S Corporation is not recognized by some states. Some of them also treat this corporation like the way Federal government treat it. This corporation will pay tax to the federal and is not considered as state tax. You will know more about taxes here at Florida Divisions of Corporations.
- The Corporation Size. The S Corporation has limited number of shareholders. But the C Corporation is more flexible that is why they are chosen by many companies.
- The Member Ownership. All the ownerships of the S Corporation must live in the US or a citizen. C Corporation has many types of class stocks while S Corporation is only limited to one-class-stock.
These are only the known and few differences of the two corporations that many companies have been confusing about. There are also issues about LLC vs S Corp.