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Buyers > Tools > Business Organizations

C Corporation

This information came from the State of New Jersey’s Web site.
Check with your accountant, lawyer or small business advisor for the most current information or changes to the tax law for this type of business organization.

A C corporation is not actually a business structure, but the "tax status" of a company. All corporations are C Corporations unless they opt to take advantage of a provision in both federal and state tax laws to become S corporations.

Taxes on profits of a C Corporation are paid both by the corporation itself and by the shareholders when the profits are received as dividends. However, shareholders cannot deduct any losses posted by the C Corporation.

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