C corporations and S corporations are separate taxpaying entities that pay tax on their own income.
S corporations are flow-through entities whose income "flows through" to their owners who are responsible for paying tax on the income.

Question

Quizplus · Accepted Answer

C corporations are separate taxpaying entities, but S corporations are not; S corporations' income flows through to shareholders who pay taxes on it.

C Corporations and S Corporations Are Separate Taxpaying Entities That