C and S Corporations

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C & S Corporations Student’s Name Institution’s Name C Corporation Most businesses seek to minimize the financial liabilities of their owner. These businesses organize themselves under a legal structure dubbed as a C corporation. This legal structure allows taxation of companies as separate entities. Subchapter C of the Internal Revenue Code harbours some rules and regulations. Due to their governance by these rules, C Corporations assume their name CITATION Jea17 l 2057 (Murray, 2017). C Corporations pay both state and federal taxes. Safeguarding of personal properties of the owners of a C corporation occurs through the limited liability protection, should the firm incur legal issues or debts that compromise its profitability. However, C Corporations may face double taxation since the owners and the business itself must pay taxes on the profits acquired. Shareholders are the critical owners of a C Corporation. These shareholders own various percentages of the company's stock. The legal structure (C Corporation) allows an unlimited number of shareholders or investors to claim ownership of the firm CITATION Jea17 l 2057 (Murray, 2017). These investors have a crucial role in electing the board of directors that oversees the governance the business. C corporations must ensure holding of regular board meetings, in which minute recording is critical. A resident agent is crucial personnel in all C Corporations whose role is to oversee summons or petitions in courts of law in cases filed against the business. Taxation in this kind of legal structure occurs quarterly. The link to the IRS with the information on this kind of corporation is;