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C Corporation vs S Corporation on W-9 Form

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On the W-9 form, what is the difference between a C Corporation and a S Corporation?

The main difference between C and S corporations is the tax treatment. C corporations pay income tax on their corporate earnings, while (generally speaking) S corporation earnings "pass-through" to the shareholders and are taxed at the shareholder level. Both are corporate entities created under state law, but S corporations must meet certain qualifications (e.g., restrictions on the type and number of shareholders).

Entities formed as a limited liability company under state law may elect to be treated for tax purposes as a partnership, C corporation or S corporation. The particular election for an LLC must be noted on the W-9.

The W-9 instructions give additional information on this.

First published on 8/8/11

First published on 08/08/2011

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