In order to establish a C corporation, it is a requirement that investors run the company, whereas in an S corporation, this is not the case.

Question

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In a C corporation, the investors elect the Board of Directors. The Board of Directors appoints the officers and management team. It is not a requirement that investors run the company. S corporations also have stockholders, directors, and employees, but S corporations are taxed differently from C corporations.

In Order to Establish a C Corporation, It Is a Requirement