8 S corporation : 小型企业公司A form of corporation, allowed by the IRS for most companies with 75 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership. also called Subchapter ['sʌbtʃæptə] S Corporation.

9 C corporation有限合伙企业 A business which is a completely separate entity from its owners, unlike a partnership. C corporation refers to any corporation that, under United States income tax law, is taxed separately from its owners. It is distinguished from an S corporation, which is not taxed separately. Most major companies (and many smaller companies) are treated as C corporations for U.S. income tax purposes.

Major Benefits of a C Corporation

• As opposed to a sole proprietor or an LLC, corporations are usually at a lower risk of being audited by the government.
• The owners and the shareholders of a C corporation have a limited liability towards business debts.
• A C corporation can deduct the cost of benefit as a business expense. For example, they can write off the entire costs of health plans established for employees as business expenses. These benefits are tax-free even for those receiving them.
• A C corporation can be used to split the corporate profit amongst the owners and the corporation. This can result in overall tax savings. The tax rate for a corporation is usually less than that for an individual, especially for the first $50,000 of taxable income.
• In a C corporation, there can be an unlimited number of stockholders. This allows the corporation to sell shares to a large amount of investors, which allows for more funds to be raised for projects.
• Additional funds can be raised by a C corporation by the way of sale of stocks if the company stands in need of finances for expansion
• Foreign nationals have a right to own or invest in a C corporation. There is no binding on the type of investors as in the case of an S corporation. This lets a greater number of diverse investors participate in the business and also allows foreign money to flow in for investment.
• The owner (majority shareholder) of a C corporation has the option of
  

issuing different "classes" of stocks to different shareholders. This helps attract different groups of investors as common stocks and preferred stocks both have their own distinct advantages that may appeal to one but not to another.

C corporation vs. S corporationShareholders of a corporation may elect to treat the corporation as a flow-through entity known as an S corporation. An S corporation is not itself subject to income tax; rather, shareholders of the S corporation are subject to tax on their pro rata shares of income based on their shareholdings.[1] To qualify to make the S corporation election, the corporation's shares must be held by resident or citizen individuals or certain qualifying trusts. Unlike corporations treated as S corporations, a corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.