The factor that most distinguishes a Subchapter S corporation from a "C corporation" is:

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The main difference between a Subchapter S corporation and a C corporation is how they are taxed. Subchapter S corporations are not subject to federal income tax and instead, the shareholders report the corporation's income on their personal tax returns at individual tax rates. C corporations, on the other hand, are taxed at the corporate level, and then again at the individual level when shareholders receive dividends. While organizational structure and transfer rights may also differ between the two types of corporations, the primary distinguishing factor is taxation.

The Factor That Most Distinguishes a Subchapter S Corporation from a "C