Compare S corporation vs C corporation
Learn the benefits of each type — limited liability protection, document filings, taxation, ownership, and more.
Overview
Both S-Corps and C-Corps offer limited liability and a formal corporate structure, but they differ sharply in taxation and ownership rules.
Both S-Corps and C-Corps offer limited liability and a formal corporate structure, but they differ sharply in taxation and ownership rules.
Key differences
C-Corp: taxed at the corporate level (21% federal), unlimited shareholders, can issue multiple stock classes. Required for VC funding.
S-Corp: pass-through taxation, max 100 shareholders, all must be US persons — which makes S-Corps unavailable to non-US founders. Most non-US founders form a C-Corp by default.
Frequently asked questions
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Delaware C-Corp or Wyoming LLC — formed in days, not months.
