Should I elect for my entity to be taxed as a C-corporation or an S-corporation?

Choosing whether to elect to be taxed as a C-corporation or S-corporation depends on your individual situation regarding your business. An S-corporation only requires a single layer of taxation. Therefore, an S-corporation does not tax at the corporate level, rather it only taxes the indiviudal shareholders based on their personal tax returns. C-corporations, however, are subject to double taxation, which means the company’s profits are taxed as a whole and again when the profits are, then, distributed to the shareholders.