When the courts of appeals were created in 1891, one was created for each of the nine circuits then existing, and each court was named the United States Circuit Court of Appeals for the _____ Circuit.
What are the main differences between a C corporation and an S corporation? C corporations are subject to double taxation; that is, one tax at the corporate level on the corporation's net income, and another tax to the shareholders when the profits are distributed. S corporations have only one level of taxation. All of their income is allocated to the shareholders.
One possible tax advantage of an S Corp is pass-through taxation. Corporations can elect pass-through taxation by applying to the IRS for status as a Subchapter S Corporation. The S Corporation provides the same protection from personal liability as a C Corporation. However, owners of an S Corporation can report their share of profit and loss in the company on their individual tax returns. An S Corporation files IRS Form 1120s to report income. S Corporations have a number of restrictions. Most notably, only U.S. citizens or permanent residents may own an S Corporation.