Browse Definitions :
Definition

corporation (C corporation, C corp)

A corporation is a large and complex organization that is owned by its shareholders and governed by a board of directors.

The corporation is considered an independent legal entity and, as such, is responsible for its actions and debts. Corporations pay tax on their net income; shareholders pay tax on distributions but are not responsible for corporate debts and liabilities.

A standard corporation is sometimes known as a C corporation or C corp but is usually just called a corporation unless the distinction is required for clarity. An S corporation (S corp) is an organization that has filed for that status under Subchapter S of the United States tax code, as the C corp has similarly filed under Subchapter C. The profits and losses of an S corporation pass through to stockholders and must be reconciled on their individual tax returns. The benefit of the S corp is that double taxation cannot occur, as it does for the C corp.

The benefit corporation (B corp) is another variation on the standard that commits to social and environmental efforts in addition to corporate sustainability and in return is eligible for some types of legal protection and tax benefits.

Companies made up of multiple separate corporations are known as conglomerates. Typically, a conglomerate is a parent company with one or more subsidiaries, which are partially or wholly-owned companies. Alternative business structures to the corporation include sole proprietorships, partnerships and limited liability companies (LLCs).

 

This was last updated in December 2015

Continue Reading About corporation (C corporation, C corp)

SearchCompliance

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • unified threat management (UTM)

    Unified threat management (UTM) describes an information security (infosec) system that provides a single point of protection ...

  • physical security

    Physical security is the protection of personnel, hardware, software, networks and data from physical actions and events that ...

  • attack vector

    An attack vector is a path or means by which an attacker or hacker can gain access to a computer or network server in order to ...

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close