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md:hidden"></div><div class="md:px-0 px-4"><p class="text-[#FFFFFF] text-xl leading-7 font-semibold md:pt-0 pt-6">What kind of entity do you have?</p><div class="md:flex md:flex-row gap-3 md:justify-center md:pt-4 flex flex-col md:flex-wrap md:pt-0 pt-4"><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-[#212121]"><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">Sole Proprietorship</p></button><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-[#212121]"><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">Partnership</p></button><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-[#212121]"><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">S Corp</p></button><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-ff-green-2 "><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">C Corp</p></button><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-[#212121]"><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">LLC</p></button><button class="bg-[#1A1A1A] rounded-xl md:w-[272px] w-full border-[1px] border-[#212121]"><p class="py-4 px-4 text-[#E1E1E1] text-base font-semibold leading-6 text-center">LLP</p></button></div><div class="mt-3"><div class="border-none text-white flex flex-col gap-[10px] w-full rounded-lg"><div class="relative flex items-center rounded-lg h-[54px] px-5 border" style="background:#191919;border-color:#212121"><input class="disabled:text-[#606060] outline-none h-full flex-1 placeholder:text-[#4C4C4C] overflow-hidden placeholder:font-normal" style="background:#191919" type="text" inputMode="text" pattern="" maxLength="40" autoComplete="off" placeholder="Others (please specify)" value=""/></div></div></div><div class="text-[#121212] df:rounded-lg df:shadow-none md:hidden pt-7 pb-3"><button class=" bg-[#4AFFE0] text-black-120 md:cursor-pointer hover:opacity-[0.93] py-3 px-2 text-base font-semibold w-full h-12 rounded-lg flex justify-center items-center gap-1 cursor-not-allowed h-12">Continue</button></div></div></div></div><div class="md:flex md:flex-row md:justify-between hidden"><div class="w-full flex justify-end h-[92px]"><div class="py-5 w-[200px] h-[52px] w-full px-8"><button class=" bg-[#4AFFE0] text-black-120 md:cursor-pointer hover:opacity-[0.93] py-3 px-2 text-base font-semibold w-full h-12 rounded-lg flex justify-center items-center gap-1 cursor-not-allowed ">Continue</button></div></div></div></div></div></div></div></div></section><section class="md:mx-auto mx-4 md:mt-28 mt-14 md:px-4 lg:px-0"><div class="lg:w-[49.13rem] md:mx-auto"></div><div class="lg:w-[49.13rem] md:mx-auto"><h1 class="md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 mb-6">C Corporations: <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">Corporation tax, Form 1120, How to file</span></h1> <div class="py-2 flex flex-col gap-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500">Deciding how to incorporate your business can make a big difference down the road. From understanding how to file business taxes and regulations to ensure your business grows, a lot is weighing on your decision. There are different entity types when it comes to incorporating, and each has its pros and cons depending on business needs and goals. This guide will explain how to file corporate taxes, the 1120 tax form, tax planning for c corps and the benefits of a C Corp. </div></div></div><div class=""><div class="mt-4"><div class="text-center text-black font-extrabold text-2xl md:text-4xl px-8 md:px-0">Most Asked Questions <span class="styles_gradient_text__w_FYD">to a FlyFin CPA</span></div><div class="flex flex-row gap-4 cluster_swiper-container mt-4 md:mt-8"><div class="swiper w-full mySwiper"><div class="swiper-wrapper"><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="8"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">What is the C Corp tax rate?</p><p class="text-[#212121] pt-3 text-base font-normal">The federal tax rate for C Corps is a flat 21%. However, this doesn't account for state taxes or potential deductions which can lower the overall tax liability.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="9"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp taxes due in 2024?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp tax returns for 2023 are due April 15, 2024. If the corporation's fiscal year ends on a date other than December 31, the tax return is due the 15th day of the fourth month after the fiscal year ends. Deductions and extensions may apply.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="0"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp taxes due?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp taxes are due on the 15th day of the 4th month after the end of the tax year, typically April 15 for calendar year filers. Ensure all deductions are properly accounted for to minimize your tax liability.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="1"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp tax returns due?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp tax returns are due on the 15th day of the 4th month after the end of the corporation's tax year. For calendar year C Corps, this means April 15. Extensions can be filed for an additional 6 months. Ensure all deductions are accurately reported.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="2"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">Can an LLC be taxed as a C Corp?</p><p class="text-[#212121] pt-3 text-base font-normal">Yes, an LLC can elect to be taxed as a C Corp by filing IRS Form 8832. This allows the LLC to benefit from corporate tax rates and potential deductions, but it also means profits may be taxed at both the corporate and shareholder levels.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="3"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">How are C Corps taxed?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corps are taxed at the corporate level on their profits at a flat rate of 21%. Shareholders are also taxed on dividends received. C Corps can claim business deductions to reduce taxable income. This results in double taxation: corporate and shareholder levels.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="4"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">How do I file C Corp taxes?</p><p class="text-[#212121] pt-3 text-base font-normal">To file C Corp taxes, complete IRS Form 1120. Report income, deductions, and credits to determine tax liability. Ensure all financial records are accurate, and consider consulting a tax professional for complex deductions and compliance.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="5"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp taxes due with an extension?</p><p class="text-[#212121] pt-3 text-base font-normal">With an extension, C Corp taxes are due six months after the original deadline, typically October 15th for calendar year filers. Ensure all tax payments and deductions are properly accounted for by this extended date to avoid penalties.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="6"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">Are C corporations double taxed?</p><p class="text-[#212121] pt-3 text-base font-normal">Yes, C Corporations (C Corps) are subject to double taxation. The corporation pays tax on its income, and shareholders pay tax on dividends received. However, C Corps can reduce taxable income through business deductions.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="7"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">How do I file C Corp taxes online?</p><p class="text-[#212121] pt-3 text-base font-normal">To file C Corp taxes online, use IRS e-file for Form 1120. Gather financial records, report income, and claim deductions. Consider tax software or a CPA for accuracy. Ensure all data is complete to avoid issues.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="8"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">What is the C Corp tax rate?</p><p class="text-[#212121] pt-3 text-base font-normal">The federal tax rate for C Corps is a flat 21%. However, this doesn't account for state taxes or potential deductions which can lower the overall tax liability.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="9"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp taxes due in 2024?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp tax returns for 2023 are due April 15, 2024. If the corporation's fiscal year ends on a date other than December 31, the tax return is due the 15th day of the fourth month after the fiscal year ends. Deductions and extensions may apply.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="0"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp taxes due?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp taxes are due on the 15th day of the 4th month after the end of the tax year, typically April 15 for calendar year filers. Ensure all deductions are properly accounted for to minimize your tax liability.</p></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="1"><div class="px-3 py-2"><div class="w-full h-[400px] p-6 bg-[#FFFFFF] border border-[#E1E1E1] rounded-xl styles_carouselBoxShadow__UFXaR"><p class="text-[#212121] font-bold text-xl">When are C Corp tax returns due?</p><p class="text-[#212121] pt-3 text-base font-normal">C Corp tax returns are due on the 15th day of the 4th month after the end of the corporation's tax year. For calendar year C Corps, this means April 15. Extensions can be filed for an additional 6 months. Ensure all deductions are accurately reported.</p></div></div></div></div><div class="swiper-button-prev"></div><div class="swiper-button-next"></div><div class="swiper-pagination"></div></div></div></div><div id="toc" class="w-full gap-10 flex flex-col"><div class="lg:w-[49.13rem] w-full md:mx-auto px-4 rounded-xl p-5 mt-4 border border-white-fade"><p class="md:text-xl md:!leading-8 font-semibold text-grey-500">Table of contents</p><div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">What is a C Corporation?...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#what-is-a-c-corporation">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">How to start a C Corp...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#how-to-start-a-c-corp">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">C Corp Taxes...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#c-corp-taxes">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">Benefits of a C Corp...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#benefits-of-a-c-corp">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">When to incorporate as a C Corp...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#when-to-incorporate-as-a-c-corp">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">C Corporation vs S Corporation...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#c-corporation-vs-s-corporation">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">C Corp vs LLC...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#c-corp-vs-llc">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">How to file taxes as a corporation...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#how-to-file-taxes-as-a-corporation">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">What is Form 1120?...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#what-is-form-1120">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">How is the 1120 form different from Schedule C?...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#how-is-the-1120-form-different-from-schedule-c">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">What is tax planning for C Corps?...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#what-is-tax-planning-for-c-corps">Read more</a></span></p></div><div class="flex flex-row my-3"><div class="w-6 h-6 items-center flex justify-around"><svg width="10" height="10" fill="none" xmlns="http://www.w3.org/2000/svg" class="scale-[0.7]"><rect width="10" height="10" rx="5" fill="#000"></rect></svg></div><p class="text-grey-500 w-11/12">What is the main corporate tax return?...<span class="underline underline-offset-2 lg:cursor-pointer cursor-not-allowed"><a href="#what-is-the-main-corporate-tax-return">Read more</a></span></p></div></div></div><div class="flex flex-col gap-10"><div id="what-is-a-c-corporation" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">What is a <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">C Corporation?</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">The C Corp definition is a type of business owned by shareholders and is ruled by the laws established by the shareholders. Shareholders and business owners are taxed separately from the C Corporation. If you establish a C Corporation, your shareholders are required to vote on a board of directors and hold annual meetings. Some examples of C Corporations include Apple, Walmart, McDonald's and Starbucks.</div></div></div><div id="how-to-start-a-c-corp" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">How to start a <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">C Corp</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">Starting a C Corporation can be complicated. First, you need to give your business a unique name and appoint officers, including a board of directors and a CEO. Then you’ll need to draft the articles of incorporation with your secretary of state and write the company bylaws. Next, you’ll need to issue stock and apply for a business license at the municipal, county and state levels. Lastly, file <a class="font-medium underline text-[#3563CD]" href="https://www.irs.gov/forms-pubs/about-form-ss-4">Form SS-4</a> to secure your employer identification number (EID) from the IRS, along with any other ID numbers based on your state’s requirements. You also have to research C Corp tax filing and the corporation tax return (1120 form).</div></div><div class="lg:w-[49.13rem] w-full md:mx-auto rounded-xl text-center lg:mx-auto"><div class="md:hidden"><div data-rmiz-wrap="visible" style="display:block"><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:177.6470588235294%"></span><img alt="Alt text: Image describing the requirements for a C Corporation including articles of incorporation, board of directors, officers, shareholders, and resident agent. No mention of self-employment, 1099, freelancer, or taxes." title="C Corporation Requirements & Structure | FLYFIN" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="responsive" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="Alt text: Image describing the requirements for a C Corporation including articles of incorporation, board of directors, officers, shareholders, and resident agent. No mention of self-employment, 1099, freelancer, or taxes." title="C Corporation Requirements & Structure | FLYFIN" sizes="100vw" srcSet="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=640&q=100 640w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=750&q=100 750w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=828&q=100 828w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=1080&q=100 1080w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=1200&q=100 1200w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=1920&q=100 1920w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=2048&q=100 2048w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=3840&q=100 3840w" src="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Mobile.png&w=3840&q=100" decoding="async" data-nimg="responsive" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" loading="lazy"/></noscript></span><button aria-label="Zoom image" data-rmiz-btn-open="true"></button></div></div><div class="hidden md:block"><div data-rmiz-wrap="visible" style="display:block"><div><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271210%27%20height=%27350%27/%3e"/></span><img alt="Alt text: Image describing the requirements for a C Corporation including articles of incorporation, board of directors, officers, shareholders, and resident agent. No mention of self-employment, 1099, freelancer, or taxes." title="C Corporation Requirements & Structure | FLYFIN" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="Alt text: Image describing the requirements for a C Corporation including articles of incorporation, board of directors, officers, shareholders, and resident agent. No mention of self-employment, 1099, freelancer, or taxes." title="C Corporation Requirements & Structure | FLYFIN" srcSet="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Desktop.png&w=1920&q=100 1x, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Desktop.png&w=3840&q=100 2x" src="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-Frame-The-Problems_Desktop.png&w=3840&q=100" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" loading="lazy"/></noscript></span></div><button aria-label="Zoom image" data-rmiz-btn-open="true"></button></div></div></div></div><div id="c-corp-taxes" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">C Corp <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">Taxes</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">No one likes paying taxes. C Corps belong to the special double taxation category. With double taxation, the corporation pays corporate taxes on its earnings and dividend taxes are paid by the shareholders. The federal corporate tax rate is 21%. C Corporations need to complete the <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/1099-tax-calculator">1099 tax</a> form, 1099-DIV, which goes to each shareholder, which gives a summary of the profits distributed to them. <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/tax-forms/form-1120">Form 1120</a> reports the taxable earnings, tax deductions and gross income. The two types of dividends are qualified and nonqualified. Qualified dividends have a lower tax rate but must be paid to shareholders from qualifying US or foreign corporations. Also, following the 120-day holding-period return, the shareholder needs to hold the stock for at least 60 of the 120 days. Nonqualified dividends don’t receive any special tax privileges and don’t meet the standard dividend requirements. Some types of dividends are automatically considered non-qualified.</div></div><div class="lg:w-[49.13rem] w-full md:mx-auto rounded-xl text-center lg:mx-auto"><div class="md:hidden"><div data-rmiz-wrap="visible" style="display:block"><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:177.6470588235294%"></span><img alt="Image listing types of nonqualified dividends including ESOP dividends, capital gains distributions, tax-exempt org dividends, and bank deposit dividends. No mention of self-employed, 1099, freelancer, or taxes." title="Nonqualified Dividends & Capital Gains: Understanding Payment Types" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="responsive" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="Image listing types of nonqualified dividends including ESOP dividends, capital gains distributions, tax-exempt org dividends, and bank deposit dividends. No mention of self-employed, 1099, freelancer, or taxes." title="Nonqualified Dividends & Capital Gains: Understanding Payment Types" sizes="100vw" srcSet="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=640&q=100 640w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=750&q=100 750w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=828&q=100 828w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=1080&q=100 1080w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=1200&q=100 1200w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=1920&q=100 1920w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=2048&q=100 2048w, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=3840&q=100 3840w" src="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png&w=3840&q=100" decoding="async" data-nimg="responsive" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" loading="lazy"/></noscript></span><button aria-label="Zoom image" data-rmiz-btn-open="true"></button></div></div><div class="hidden md:block"><div data-rmiz-wrap="visible" style="display:block"><div><span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%271210%27%20height=%27350%27/%3e"/></span><img alt="Image listing types of nonqualified dividends including ESOP dividends, capital gains distributions, tax-exempt org dividends, and bank deposit dividends. No mention of self-employed, 1099, freelancer, or taxes." title="Nonqualified Dividends & Capital Gains: Understanding Payment Types" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="intrinsic" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="Image listing types of nonqualified dividends including ESOP dividends, capital gains distributions, tax-exempt org dividends, and bank deposit dividends. No mention of self-employed, 1099, freelancer, or taxes." title="Nonqualified Dividends & Capital Gains: Understanding Payment Types" srcSet="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Desktop.png&w=1920&q=100 1x, /_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Desktop.png&w=3840&q=100 2x" src="/_next/image?url=https%3A%2F%2Fdem95u0op6keg.cloudfront.net%2Fimage%2FBusiness-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Desktop.png&w=3840&q=100" decoding="async" data-nimg="intrinsic" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" class="hover:opacity-70 lg:cursor-pointer cursor-not-allowed" loading="lazy"/></noscript></span></div><button aria-label="Zoom image" data-rmiz-btn-open="true"></button></div></div></div><div class="lg:w-[49.13rem] w-full md:mx-auto"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500">There are a few ways to avoid corporate tax. Instead of distributing the income earnings to the shareholders as dividends, simply withhold the earnings. This option is only available if you’re able to reinvest the investments into the company. Or, you can distribute income as a bonus or salary instead of dividends. The bonus or salary payments are tax deductible for the C Corporation, but the recipients will be taxed. Lastly, taking only a portion of the company’s profits as salary and leaving the rest as reinvestment will lower both the taxable income for the corporation and the owner’s total income, reducing the overall tax amount. You'll still be expected to make <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/quarterly-tax-calculator">estimated tax payments</a>.</div></div></div><div id="benefits-of-a-c-corp" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">Benefits of a <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">C Corp</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">Raising numerous rounds of venture capital is usually necessary for startups. This will help the company reach its targets for growth and size. Usually, institutional investors and venture funds will only invest in C Corps for a variety of reasons, but the tax structure is usually a driving force. For startup companies, programs like incubators and accelerators are great ways to receive support in many areas like funding, investor access and product development. These programs prefer C Corporations over other types of entities. C Corps can offer equity incentive plans, including stock options, to employees. Providing insensitive plans can instill a desire for the company’s long-term success and attract and retain talented individuals. If you want to bring on advisors to help guide the company during certain milestones, stock options are usually the option for compensating the advisors. C Corps have the power to distribute those stock options. The qualified small business stock amendment (QSBS) was passed in 1993 in 2009 to make C Corps the first and only entity to receive eligibility. The QSBS allows small business owners to be exempt from paying capital gains tax on certain stock sales if they held their shares for five years or more.</div></div></div><div id="when-to-incorporate-as-a-c-corp" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">When to incorporate <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">as a C Corp</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">There are several reasons why a C Corp might be the right choice for your business.</div></div><div class="lg:w-[49.13rem] w-full md:mx-auto flex flex-col gap-6"><div><div class="lg:w-[49.13rem] w-full border border-white-fade rounded-lg py-8 px-6 cursor-not-allowed md:cursor-default"><div class="font-medium flex flex-row items-center justify-between md:cursor-pointer"><div class="flex flex-row items-center justify-start gap-[24px]"><div><div><h3 class="text-grey-500 font-semibold text-xl mt-1">Protection</h3><p class="text-[#4C4C4C] mt-2"></p></div></div></div><div class="w-4 h-6 my-auto ml-4 mr-2 items-center flex md:mr-3 md:w-6 undefined"><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line1__F4CEi bg-black"></div><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line2__2Gd1M bg-black"></div></div></div><div class="ReactCollapse--collapse" style="height:0px;overflow:hidden" aria-hidden="true"><div class="ReactCollapse--content"><div class=""><div class="mt-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500">C Corporations have limited liability protection that covers employees, shareholders and directors. For example, if a debt lawsuit is filed against the corporation, the lawyer can’t pursue personal assets to settle the debt.</div></div></div></div></div></div></div><div><div class="lg:w-[49.13rem] w-full border border-white-fade rounded-lg py-8 px-6 cursor-not-allowed md:cursor-default"><div class="font-medium flex flex-row items-center justify-between md:cursor-pointer"><div class="flex flex-row items-center justify-start gap-[24px]"><div><div><h3 class="text-grey-500 font-semibold text-xl mt-1">Lasting business</h3><p class="text-[#4C4C4C] mt-2"></p></div></div></div><div class="w-4 h-6 my-auto ml-4 mr-2 items-center flex md:mr-3 md:w-6 undefined"><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line1__F4CEi bg-black"></div><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line2__2Gd1M bg-black"></div></div></div><div class="ReactCollapse--collapse" style="height:0px;overflow:hidden" aria-hidden="true"><div class="ReactCollapse--content"><div class=""><div class="mt-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500">Even if the owner decides to leave the business, the company won’t dissolve since they are separate legal entities. If there are two owners and one wants to leave the business, they can sell their shares and keep the business running.</div></div></div></div></div></div></div><div><div class="lg:w-[49.13rem] w-full border border-white-fade rounded-lg py-8 px-6 cursor-not-allowed md:cursor-default"><div class="font-medium flex flex-row items-center justify-between md:cursor-pointer"><div class="flex flex-row items-center justify-start gap-[24px]"><div><div><h3 class="text-grey-500 font-semibold text-xl mt-1">Limited budget</h3><p class="text-[#4C4C4C] mt-2"></p></div></div></div><div class="w-4 h-6 my-auto ml-4 mr-2 items-center flex md:mr-3 md:w-6 undefined"><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line1__F4CEi bg-black"></div><div class="undefined Accordion_accordion_header_toggler__MiYN1 w-8 h-0.25 md:h-0.5 md:w-4 Accordion_line2__2Gd1M bg-black"></div></div></div><div class="ReactCollapse--collapse" style="height:0px;overflow:hidden" aria-hidden="true"><div class="ReactCollapse--content"><div class=""><div class="mt-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500">If you have a limited budget, choosing a C Corporation is a great option since you can raise funds by selling shares of stock. You’ll have to convince investors of your business model and profitability to potentially receive investments in your company.</div></div></div></div></div></div></div></div></div><div id="c-corporation-vs-s-corporation" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">C Corporation vs <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">S Corporation</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">It can be difficult to know which type of corporate entity to choose. There are pros and cons when comparing a C Corp vs S Corp. A C Corporation is the standard option or default option with the IRS. With an S Corp, the corporation has opted to apply for a different tax status. Let’s break down the similarities between a <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/s-corp">C Corp vs S Corp</a>. Both get their names from the chapter in the IRS code in which they’re taxed and are considered separate legal entities. Also, you can get limited liability protection with either option so shareholders won’t be responsible for business debts. Finally, C Corps and S Corps have similar structures meaning they have directors, members and shareholders. However, there are some big differences between a C Corporation vs S corporation. When it comes to taxes, a C Corp has to pay corporate taxes and files a corporate tax return, facing double taxation. On the other hand, since S Corps are pass-through entities, they file Form 1120-S, which is only used for informational purposes. So the income distribution to shareholders is taxed only at the individual level. C Corps have freedom when it comes to company shareholders, whereas S Corps have a lot more restrictions in place, like having no more than 100 shareholders. Filing taxes for a business is difficult enough, so consider consulting with a tax pro to understand what corporation is best for you.</div></div></div><div id="c-corp-vs-llc" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">C Corp vs <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">LLC</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">There’s no denying that starting and managing an <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/llc">LLC</a> is much easier than other corporations. Since the process is started under state law, the process of forming an LLC depends on the individual state’s law. When it comes to filing business tax, LLC members have the freedom to choose the way they’re taxed. They can be taxed as a <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/sole-proprietorship">sole proprietorship</a>, a corporation or a partnership. They do have to pay <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/self-employment-tax-calculator">self-employment taxes</a> if they are sole proprietor or partnership. C Corporations are taxed separately from the owners and pay corporate income tax. An LLC company can’t offer stock options, and all the profits are distributed to the members. A C Corporation has the option to keep the profits within the business and distribute dividends as payment to the shareholders. Both entities have powerful legal advantages, which help protect assets from creditors and provide protection against legal liability. When it comes to choosing between <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/llc-s-corp-vs-c-corp">C Corp vs LLC</a>, it comes to which option is better suited for your business goals.</div></div></div><div id="how-to-file-taxes-as-a-corporation" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">How to file <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">taxes as a corporation</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">Filing taxes as a corporation is complicated but here are the basics. If you’re a C corporation, you’ll primarily use Form 1120 for your tax filing. The 1120 tax form reports your corporation’s financial information. First, collect all your financial statements. You'll need to input your revenue, cost of goods sold and expenses on the form. Keep track of any deductions your corporation may qualify for as they can significantly lower your taxable income. When completing the <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/c-corp/file-c-corp-taxes-online">C corp tax filing</a>, you’ll also have to calculate your corporate tax rate. Keep in mind that your filing deadline typically falls on the 15th day of the fourth month after the end of your corporation's tax year. If you need extra time, you can file for an extension, but know that this doesn’t extend the time to pay any taxes owed. Most corporations hire CPAs to help with C Corp tax filing and handling the Form 1120. </div></div></div><div id="what-is-form-1120" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">What is <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">Form 1120?</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">Form 1120 is the essential document that C corporations use to report their income and calculate C corp taxes. The 1120 tax form is where businesses disclose their total income, including revenue from sales, investments and other sources. One of the key aspects of Form 1120 is its role in calculating the corporate income tax. The IRS applies a federal corporate tax rate to the taxable income reported on this form. Currently, the rate is a flat 21% C Corp taxes in the US. When filling out the form, you'll need to provide details about your <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/c-corp/c-corp-tax-deductions">company’s deductions</a> and credits, which can help lower your taxable income. Common deductions include business expenses like rent and operational costs. The more deductions you can claim, the lower your C Corp taxes will be. It's important to file the 1120 form on time, typically by the 15th day of the fourth month after the end of your tax year. </div></div></div><div id="how-is-the-1120-form-different-from-schedule-c" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">How is the <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">1120 form different from Schedule C?</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">The 1120 form and Schedule C serve different purposes and are used by different types of businesses. The 1120 tax form is specifically designed for C corporations, while Schedule C is used by sole proprietors to report income and expenses from their businesses. When you're dealing with <a class="font-medium underline text-[#3563CD]" href="https://flyfin.tax/business/c-corp/how-is-a-c-corp-taxed">C corp taxes</a>, you’ll file the 1120 form to report your corporation’s earnings, deductions and the overall corporate income tax owed. This form requires detailed financial information and is subject to the corporate tax rate (21%). The filing process involves following the Form 1120 instructions carefully to ensure you include all necessary details, like revenue and deductible expenses. On the other hand, Schedule C is different from the 1120 form as it is part of the individual tax return (Form 1040) for sole proprietors. It allows them to report business income and expenses directly on their personal tax returns, which means they pay taxes at their individual income tax rates. Additionally, the structure of these forms reflects their different tax treatments. While the 1120 focuses on corporate profits and losses, Schedule C emphasizes individual earnings and expenses. </div></div></div><div id="what-is-tax-planning-for-c-corps" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">What is <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">tax planning for C Corps?</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">Tax planning for C Corps is all about strategizing to keep more money in your business's pocket while navigating the complexities of corporation tax. Since C corporations deal with the C Corporation tax rate and regular tax, you really want to make the most of your tax planning efforts. One of the first things to focus on is maximizing your deductions. This means tracking expenses like benefits and office supplies. Every little bit counts, and knowing what you can deduct helps lower your C Corp taxes. Timing is another big piece of the puzzle when it comes to C Corp taxes. If you think your income might dip in the coming year, consider deferring income or accelerating some expenses. For example, if you know you’ll be investing in new equipment, it might make sense to make that purchase before year-end to lower your taxable income and make filing taxes for business easier. Working with a tax professional can also be helpful. They can help with filing business taxes and your C Corp tax filing is as efficient as possible. </div></div></div><div id="what-is-the-main-corporate-tax-return" class="relative w-full flex flex-col gap-4 md:mt-1 -mt-3"><h2 class="lg:w-[49.13rem] md:mx-auto md:text-4xl md:!leading-12 text-2xl w-full font-extrabold text-grey-500 ">What is the <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%); -webkit-background-clip: text; -webkit-text-fill-color: transparent; background-clip: text; text-fill-color: transparent;">main corporate tax return?</span></h2> <div class="lg:w-[49.13rem] w-full md:mx-auto my-4"><div class="md:text-xl md:!leading-8 font-normal whitespace-pre-line text-grey-500 ">The main corporate tax return for C corporations is the Form 1120. This form is essential for reporting your business's income, gains, losses, deductions and credits. If you're running a C corporation, understanding how to complete this form is a big part of it, as it directly impacts how much you pay in corporate taxes. When you fill out the 1120 tax form, you’ll need to provide detailed financial information. You can find the Form 1120 instructions on the IRS website along with more information about how to file business taxes. One of the key aspects of the corporate tax return is calculating your taxable income. This involves applying the current C corporation tax rate. This rate simplifies things compared to previous systems with multiple brackets. </div></div></div></div></div></div></section><section><div class="lg:w-[49.13rem] w-full md:mx-auto px-4 lg:px-0 md:text-xl font-normal whitespace-pre-line text-grey-500 mb-4"></div></section><section></section><section><div class="relative pb-12 pt-20 px-4 lg:px-31 mx-auto cluster_swiper-container"><div class="rounded-b-lg flex flex-wrap text-white"><div class="swiper mySwiper"><div class="swiper-wrapper"><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="5"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">NPO</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Nonprofit status may be right for your business if you're ready to incorporate and your organization seeks to benefit society.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/npo">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="6"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">Federal Taxes</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Paying business tax means following the US corporate tax rate, dealing with federal and state level tax liabilities and filing accurate returns. </p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/federal-taxes">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="0"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">S Corp</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Master S Corp taxes by learning how to fill out Form 1120-S. Get clear insights into S Corp taxation to simplify your filing and keep your business compliant.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/s-corp">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="1"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">LLC</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Learn how to file LLC for your small business, navigate LLC taxes and tackle single member LLC tax reporting. FlyFin can help file taxes as an LLC and save on taxes.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/llc">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="2"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">Sole Proprietor</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">A sole proprietorship is a business that has only one employee, who is also the owner. Check how sole proprietors file their taxes.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/sole-proprietorship">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="3"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">Partnership</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Learn about Form 1065 and SChedule K-1 for your partnership taxes. Get guidance for your partnership tax return and make partnership LLC tax filing easy and accurate.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/partnership">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="4"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">LLC vs S Corp vs C Corp</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">When we look for an LLC Vs SCorp Vs CCorp comparison, we find a lot of differences between the three, and then there are similarities in taxes and business rules and regulations.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/llc-s-corp-vs-c-corp">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="5"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">NPO</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Nonprofit status may be right for your business if you're ready to incorporate and your organization seeks to benefit society.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/npo">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed" data-swiper-slide-index="6"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">Federal Taxes</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Paying business tax means following the US corporate tax rate, dealing with federal and state level tax liabilities and filing accurate returns. </p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/federal-taxes">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="0"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">S Corp</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Master S Corp taxes by learning how to fill out Form 1120-S. Get clear insights into S Corp taxation to simplify your filing and keep your business compliant.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/s-corp">LEARN MORE →</a></div></div></div><div class="swiper-slide mb-7 md:cursor-pointer cursor-not-allowed swiper-slide-duplicate" data-swiper-slide-index="1"><div class="w-full h-full bg-white-light rounded-xl flex flex-col justify-between border border-white-fade overflow-hidden cursor-default"><div class="p-6 pt-10 pb-0"><p class="text-black font-semibold md:text-2xl">LLC</p><p class="text-black-dark font-normal md:text-base text-sm mt-2 line-clamp-3 !leading-[180%]">Learn how to file LLC for your small business, navigate LLC taxes and tackle single member LLC tax reporting. FlyFin can help file taxes as an LLC and save on taxes.</p></div><div class="pb-6"><hr class="h-px w-full text-[#F1F1F1] mb-6"/><a class="text-grey-500 tracking-[1px] font-semibold p-6 pt-0" href="https://flyfin.tax/business/llc">LEARN MORE →</a></div></div></div></div><div class="swiper-button-prev"></div><div class="swiper-button-next"></div><div class="swiper-pagination"></div></div></div></div></section><div class="w-full flex flex-col bg-transparent px-4 lg:px-[120px] pt-12 pb-8 md:py-8"></div><section class="bg-[#FAF9FF] w-full"><div class="2xl:w-[70%] xl:w-[90%] mx-auto grid lg:grid-cols-2 grid-cols-1 gap-4 px-5 xl:gap-20 xl:px-24 pt-8 items-center pb-10 md:mt-20 mt-10"><div class="w-full"><h2 class="md:text-3xl text-2xl text-black font-semibold">What’s FlyFin?</h2><div class="md:text-xl text-base text-[#212121] font-normal lg:whitespace-pre-line md:whitespace-normal whitespace-pre-line mt-4">FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. to find every possible tax deduction. Then, the CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. Download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and more money on your taxes than last year, guaranteed.</div><div class="grid md:grid-cols-3 grid-cols-1 gap-3 md:my-16 my-8"><div class="flex flex-col justify-start md:items-start items-center gap-4 "> <span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2740%27%20height=%2740%27/%3e"/></span><img alt="https://dem95u0op6keg.cloudfront.net/image/PriceCalculator.webp" 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class="text-black-dark font-semibold md:text-left text-center ">A.I. finds every tax deduction, eliminating 95% of your work</p></div><div class="flex flex-col justify-start md:items-start items-center gap-4 "> <span style="box-sizing:border-box;display:inline-block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative;max-width:100%"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;max-width:100%"><img style="display:block;max-width:100%;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0" alt="" aria-hidden="true" src="data:image/svg+xml,%3csvg%20xmlns=%27http://www.w3.org/2000/svg%27%20version=%271.1%27%20width=%2740%27%20height=%2740%27/%3e"/></span><img alt="https://dem95u0op6keg.cloudfront.net/image/MoneySack.webp" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" 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All Rights Reserved. </div></div></div></div></div></div></div></div><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"businessType":"c-corp","dropDownHead":"C Corp","currentbusinessTypePageData":{"topSectionTitle":{"boldHead":"C Corporations: Corporation tax, Form 1120, How to file"},"headerText":"C Corporations: \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eCorporation tax, Form 1120, How to file\u003c/span\u003e","taxFormBriefText":"Deciding how to incorporate your business can make a big difference down the road. From understanding how to file business taxes and regulations to ensure your business grows, a lot is weighing on your decision. There are different entity types when it comes to incorporating, and each has its pros and cons depending on business needs and goals.\n\nThis guide will explain how to file corporate taxes, the 1120 tax form, tax planning for c corps and the benefits of a C Corp. ","tableOfContents":[{"headText":"What is a \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eC Corporation?\u003c/span\u003e","contentText":"The C Corp definition is a type of business owned by shareholders and is ruled by the laws established by the shareholders. Shareholders and business owners are taxed separately from the C Corporation. If you establish a C Corporation, your shareholders are required to vote on a board of directors and hold annual meetings. Some examples of C Corporations include Apple, Walmart, McDonald's and Starbucks."},{"headText":"How to start a \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eC Corp\u003c/span\u003e","contentText":"Starting a C Corporation can be complicated. First, you need to give your business a unique name and appoint officers, including a board of directors and a CEO. Then you’ll need to draft the articles of incorporation with your secretary of state and write the company bylaws.\n\nNext, you’ll need to issue stock and apply for a business license at the municipal, county and state levels. Lastly, file \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://www.irs.gov/forms-pubs/about-form-ss-4\"\u003eForm SS-4\u003c/a\u003e to secure your employer identification number (EID) from the IRS, along with any other ID numbers based on your state’s requirements. You also have to research C Corp tax filing and the corporation tax return (1120 form).","contentImage1":{"mobile":{"url":"/image/Business-Org-Ccorp-Frame-The-Problems_Mobile.png","width":340,"height":604},"desktop":{"url":"/image/Business-Org-Ccorp-Frame-The-Problems_Desktop.png","width":1210,"height":350},"title":"C Corporation Requirements \u0026 Structure | FLYFIN","altText":"Alt text: Image describing the requirements for a C Corporation including articles of incorporation, board of directors, officers, shareholders, and resident agent. No mention of self-employment, 1099, freelancer, or taxes."}},{"headText":"C Corp \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eTaxes\u003c/span\u003e","contentText":"No one likes paying taxes. C Corps belong to the special double taxation category. With double taxation, the corporation pays corporate taxes on its earnings and dividend taxes are paid by the shareholders.\n\nThe federal corporate tax rate is 21%. C Corporations need to complete the \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/1099-tax-calculator\"\u003e1099 tax\u003c/a\u003e form, 1099-DIV, which goes to each shareholder, which gives a summary of the profits distributed to them. \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/tax-forms/form-1120\"\u003eForm 1120\u003c/a\u003e reports the taxable earnings, tax deductions and gross income. \n\nThe two types of dividends are qualified and nonqualified. Qualified dividends have a lower tax rate but must be paid to shareholders from qualifying US or foreign corporations. Also, following the 120-day holding-period return, the shareholder needs to hold the stock for at least 60 of the 120 days.\n\nNonqualified dividends don’t receive any special tax privileges and don’t meet the standard dividend requirements. Some types of dividends are automatically considered non-qualified.","contentImage1":{"mobile":{"url":"/image/Business-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Mobile.png","width":340,"height":604},"desktop":{"url":"/image/Business-Org-Ccorp-List-3-5-ways-your-cmpany-proposes-to-solve-them_Desktop.png","width":1210,"height":350},"title":"Nonqualified Dividends \u0026 Capital Gains: Understanding Payment Types","altText":"Image listing types of nonqualified dividends including ESOP dividends, capital gains distributions, tax-exempt org dividends, and bank deposit dividends. No mention of self-employed, 1099, freelancer, or taxes."},"postImage1Text":"There are a few ways to avoid corporate tax. Instead of distributing the income earnings to the shareholders as dividends, simply withhold the earnings. This option is only available if you’re able to reinvest the investments into the company.\n\nOr, you can distribute income as a bonus or salary instead of dividends. The bonus or salary payments are tax deductible for the C Corporation, but the recipients will be taxed. Lastly, taking only a portion of the company’s profits as salary and leaving the rest as reinvestment will lower both the taxable income for the corporation and the owner’s total income, reducing the overall tax amount. You'll still be expected to make \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/quarterly-tax-calculator\"\u003eestimated tax payments\u003c/a\u003e."},{"headText":"Benefits of a \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eC Corp\u003c/span\u003e","contentText":"Raising numerous rounds of venture capital is usually necessary for startups. This will help the company reach its targets for growth and size. Usually, institutional investors and venture funds will only invest in C Corps for a variety of reasons, but the tax structure is usually a driving force.\n\nFor startup companies, programs like incubators and accelerators are great ways to receive support in many areas like funding, investor access and product development. These programs prefer C Corporations over other types of entities.\n\nC Corps can offer equity incentive plans, including stock options, to employees. Providing insensitive plans can instill a desire for the company’s long-term success and attract and retain talented individuals.\n\nIf you want to bring on advisors to help guide the company during certain milestones, stock options are usually the option for compensating the advisors. C Corps have the power to distribute those stock options.\n\nThe qualified small business stock amendment (QSBS) was passed in 1993 in 2009 to make C Corps the first and only entity to receive eligibility. The QSBS allows small business owners to be exempt from paying capital gains tax on certain stock sales if they held their shares for five years or more."},{"headText":"When to incorporate \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eas a C Corp\u003c/span\u003e","contentText":"There are several reasons why a C Corp might be the right choice for your business.","subContent":{"subContentType":1,"subContentData":[{"subHeadText":"Protection","subContentText":"C Corporations have limited liability protection that covers employees, shareholders and directors. For example, if a debt lawsuit is filed against the corporation, the lawyer can’t pursue personal assets to settle the debt."},{"subHeadText":"Lasting business","subContentText":"Even if the owner decides to leave the business, the company won’t dissolve since they are separate legal entities. If there are two owners and one wants to leave the business, they can sell their shares and keep the business running."},{"subHeadText":"Limited budget","subContentText":"If you have a limited budget, choosing a C Corporation is a great option since you can raise funds by selling shares of stock. You’ll have to convince investors of your business model and profitability to potentially receive investments in your company."}]}},{"headText":"C Corporation vs \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eS Corporation\u003c/span\u003e","contentText":"It can be difficult to know which type of corporate entity to choose. There are pros and cons when comparing a C Corp vs S Corp. A C Corporation is the standard option or default option with the IRS. With an S Corp, the corporation has opted to apply for a different tax status.\n\nLet’s break down the similarities between a \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/s-corp\"\u003eC Corp vs S Corp\u003c/a\u003e. Both get their names from the chapter in the IRS code in which they’re taxed and are considered separate legal entities. Also, you can get limited liability protection with either option so shareholders won’t be responsible for business debts. Finally, C Corps and S Corps have similar structures meaning they have directors, members and shareholders.\n\nHowever, there are some big differences between a C Corporation vs S corporation. When it comes to taxes, a C Corp has to pay corporate taxes and files a corporate tax return, facing double taxation. \n\nOn the other hand, since S Corps are pass-through entities, they file Form 1120-S, which is only used for informational purposes. So the income distribution to shareholders is taxed only at the individual level.\n\nC Corps have freedom when it comes to company shareholders, whereas S Corps have a lot more restrictions in place, like having no more than 100 shareholders. Filing taxes for a business is difficult enough, so consider consulting with a tax pro to understand what corporation is best for you."},{"headText":"C Corp vs \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eLLC\u003c/span\u003e","contentText":"There’s no denying that starting and managing an \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/llc\"\u003eLLC\u003c/a\u003e is much easier than other corporations. Since the process is started under state law, the process of forming an LLC depends on the individual state’s law.\n\nWhen it comes to filing business tax, LLC members have the freedom to choose the way they’re taxed. They can be taxed as a \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/sole-proprietorship\"\u003esole proprietorship\u003c/a\u003e, a corporation or a partnership. They do have to pay \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/self-employment-tax-calculator\"\u003eself-employment taxes\u003c/a\u003e if they are sole proprietor or partnership. C Corporations are taxed separately from the owners and pay corporate income tax.\n\nAn LLC company can’t offer stock options, and all the profits are distributed to the members. A C Corporation has the option to keep the profits within the business and distribute dividends as payment to the shareholders.\n\nBoth entities have powerful legal advantages, which help protect assets from creditors and provide protection against legal liability. When it comes to choosing between \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/llc-s-corp-vs-c-corp\"\u003eC Corp vs LLC\u003c/a\u003e, it comes to which option is better suited for your business goals."},{"headText":"How to file \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003etaxes as a corporation\u003c/span\u003e","contentText":"Filing taxes as a corporation is complicated but here are the basics. If you’re a C corporation, you’ll primarily use Form 1120 for your tax filing. The 1120 tax form reports your corporation’s financial information. \n\nFirst, collect all your financial statements. You'll need to input your revenue, cost of goods sold and expenses on the form. Keep track of any deductions your corporation may qualify for as they can significantly lower your taxable income.\n\nWhen completing the \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/c-corp/file-c-corp-taxes-online\"\u003eC corp tax filing\u003c/a\u003e, you’ll also have to calculate your corporate tax rate. Keep in mind that your filing deadline typically falls on the 15th day of the fourth month after the end of your corporation's tax year. If you need extra time, you can file for an extension, but know that this doesn’t extend the time to pay any taxes owed. Most corporations hire CPAs to help with C Corp tax filing and handling the Form 1120. "},{"headText":"What is \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003eForm 1120?\u003c/span\u003e","contentText":"Form 1120 is the essential document that C corporations use to report their income and calculate C corp taxes. The 1120 tax form is where businesses disclose their total income, including revenue from sales, investments and other sources.\n\nOne of the key aspects of Form 1120 is its role in calculating the corporate income tax. The IRS applies a federal corporate tax rate to the taxable income reported on this form. Currently, the rate is a flat 21% C Corp taxes in the US.\n\nWhen filling out the form, you'll need to provide details about your \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/c-corp/c-corp-tax-deductions\"\u003ecompany’s deductions\u003c/a\u003e and credits, which can help lower your taxable income. Common deductions include business expenses like rent and operational costs. The more deductions you can claim, the lower your C Corp taxes will be. It's important to file the 1120 form on time, typically by the 15th day of the fourth month after the end of your tax year. "},{"headText":"How is the \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003e1120 form different from Schedule C?\u003c/span\u003e","contentText":"The 1120 form and Schedule C serve different purposes and are used by different types of businesses. The 1120 tax form is specifically designed for C corporations, while Schedule C is used by sole proprietors to report income and expenses from their businesses.\n\nWhen you're dealing with \u003ca class=\"font-medium underline text-[#3563CD]\" href=\"https://flyfin.tax/business/c-corp/how-is-a-c-corp-taxed\"\u003eC corp taxes\u003c/a\u003e, you’ll file the 1120 form to report your corporation’s earnings, deductions and the overall corporate income tax owed. This form requires detailed financial information and is subject to the corporate tax rate (21%). The filing process involves following the Form 1120 instructions carefully to ensure you include all necessary details, like revenue and deductible expenses.\n\nOn the other hand, Schedule C is different from the 1120 form as it is part of the individual tax return (Form 1040) for sole proprietors. It allows them to report business income and expenses directly on their personal tax returns, which means they pay taxes at their individual income tax rates. \n\nAdditionally, the structure of these forms reflects their different tax treatments. While the 1120 focuses on corporate profits and losses, Schedule C emphasizes individual earnings and expenses. "},{"headText":"What is \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003etax planning for C Corps?\u003c/span\u003e","contentText":"Tax planning for C Corps is all about strategizing to keep more money in your business's pocket while navigating the complexities of corporation tax. Since C corporations deal with the C Corporation tax rate and regular tax, you really want to make the most of your tax planning efforts.\n\nOne of the first things to focus on is maximizing your deductions. This means tracking expenses like benefits and office supplies. Every little bit counts, and knowing what you can deduct helps lower your C Corp taxes. \n\nTiming is another big piece of the puzzle when it comes to C Corp taxes. If you think your income might dip in the coming year, consider deferring income or accelerating some expenses. For example, if you know you’ll be investing in new equipment, it might make sense to make that purchase before year-end to lower your taxable income and make filing taxes for business easier.\n\nWorking with a tax professional can also be helpful. They can help with filing business taxes and your C Corp tax filing is as efficient as possible. "},{"headText":"What is the \u003cspan style=\"background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);\n -webkit-background-clip: text;\n -webkit-text-fill-color: transparent;\n background-clip: text;\n text-fill-color: transparent;\"\u003emain corporate tax return?\u003c/span\u003e","contentText":"The main corporate tax return for C corporations is the Form 1120. This form is essential for reporting your business's income, gains, losses, deductions and credits. If you're running a C corporation, understanding how to complete this form is a big part of it, as it directly impacts how much you pay in corporate taxes.\n\nWhen you fill out the 1120 tax form, you’ll need to provide detailed financial information. You can find the Form 1120 instructions on the IRS website along with more information about how to file business taxes.\n\nOne of the key aspects of the corporate tax return is calculating your taxable income. This involves applying the current C corporation tax rate. This rate simplifies things compared to previous systems with multiple brackets. "}],"whatsFlyFinText":"FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors.\n\nBut anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. to find every possible tax deduction. \n\nThen, the CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes.\n\nDownload the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and more money on your taxes than last year, guaranteed.","whatsFlyFinBadgeData":[{"imageUrl":"/image/PriceCalculator.webp","label":"Expert tax CPAs ensure\n 100%-accurate tax filing"},{"imageUrl":"/image/AiBrain.webp","label":"A.I. finds every tax deduction,\n eliminating 95% of your work"},{"imageUrl":"/image/MoneySack.webp","label":"On average users\n save $3,700"}],"whatsFlyFinRightImage":{"url":"/image/whatsFlyfinRight.png","width":305,"height":615},"metas":{"title":"How To File C Corp Taxes With Form 1120: A Look Into Corporate Tax","desc":"Everything you need to know about C Corp taxes in our comprehensive guide. Learn about Form 1120, understand corporate tax, and how to tax plan for a C Corporation."}},"carouselData":[{"endPoint":"s-corp","head":"S Corp","supportedText":"Master S Corp taxes by learning how to fill out Form 1120-S. Get clear insights into S Corp taxation to simplify your filing and keep your business compliant.","link":"https://flyfin.tax/business/s-corp"},{"endPoint":"llc","head":"LLC","supportedText":"Learn how to file LLC for your small business, navigate LLC taxes and tackle single member LLC tax reporting. FlyFin can help file taxes as an LLC and save on taxes.","link":"https://flyfin.tax/business/llc"},{"endPoint":"sole-proprietorship","head":"Sole Proprietor","supportedText":"A sole proprietorship is a business that has only one employee, who is also the owner. Check how sole proprietors file their taxes.","link":"https://flyfin.tax/business/sole-proprietorship"},{"endPoint":"partnership","head":"Partnership","supportedText":"Learn about Form 1065 and SChedule K-1 for your partnership taxes. Get guidance for your partnership tax return and make partnership LLC tax filing easy and accurate.","link":"https://flyfin.tax/business/partnership"},{"endPoint":"llc-s-corp-vs-c-corp","head":"LLC vs S Corp vs C Corp","supportedText":"When we look for an LLC Vs SCorp Vs CCorp comparison, we find a lot of differences between the three, and then there are similarities in taxes and business rules and regulations.","link":"https://flyfin.tax/business/llc-s-corp-vs-c-corp"},{"endPoint":"npo","head":"NPO","supportedText":"Nonprofit status may be right for your business if you're ready to incorporate and your organization seeks to benefit society.","link":"https://flyfin.tax/business/npo"},{"endPoint":"federal-taxes","head":"Federal Taxes","supportedText":"Paying business tax means following the US corporate tax rate, dealing with federal and state level tax liabilities and filing accurate returns. ","link":"https://flyfin.tax/business/federal-taxes"}]},"__N_SSG":true},"page":"/business/[businessType]","query":{"businessType":"c-corp"},"buildId":"CttaZFsCpZ_SOLeEmdd-c","isFallback":false,"gsp":true,"locale":"en-US","locales":["en-US"],"defaultLocale":"en-US","scriptLoader":[]}</script><script defer=""> (function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:2559307,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; setTimeout(function () {r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r);}, 8000);})(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv='); </script><script defer=""> (function(w,d,t,r,u){var f,n,i;w[u]=w[u]||[],f=function(){var o={ti:"149009667", enableAutoSpaTracking: true};o.q=w[u],w[u]=new UET(o),w[u].push("pageLoad")},n=d.createElement(t),n.src=r,n.async=1,n.onload=n.onreadystatechange=function(){var s=this.readyState;s&&s!=="loaded"&&s!=="complete"|| (setTimeout(f, 6000),n.onload=n.onreadystatechange=null)},i=d.getElementsByTagName(t)[0],i.parentNode.insertBefore(n,i)})(window,document,"script","//bat.bing.com/bat.js","uetq");</script><link href="https://fonts.googleapis.com/css2?family=Inter:wght@100..800&display=swap" rel="stylesheet"/><link href="https://fonts.googleapis.com/css2?family=Caveat:wght@400..700&display=swap" rel="stylesheet"/><div id="modal-root"></div><div id="widget-label"></div></body></html>