Browse Definitions :
Definition

corporation (C corporation, C corp)

Contributor(s): Ivy Wigmore

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)

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

Extensiones de Documento y Formatos de Documento

Accionado por:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • reverse brute-force attack

    A reverse brute-force attack is a type of brute-force attack in which an attacker uses a common password against multiple ...

  • orphan account

    An orphan account, also referred to as an orphaned account, is a user account that can provide access to corporate systems, ...

  • voice squatting (skill squatting)

    Voice squatting is an attack vector for voice user interfaces (VUIs) that exploits homonyms (words that sound the same but are ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • warm site

    A warm site is a type of facility an organization uses to recover its technology infrastructure when its primary data center goes...

SearchStorage

  • RAM (Random Access Memory)

    RAM (Random Access Memory) is the hardware in a computing device where the operating system (OS), application programs and data ...

  • primary storage (main storage)

    Primary storage is the collective methods and technologies used to capture and retain digital information that is in active use ...

  • cache memory

    Cache memory, also called CPU memory, is high-speed static random access memory (SRAM) that a computer microprocessor can access ...

Close