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Differences among S Corp, C Corp, and Partnership

The main differences between S corporations, C corporations, and partnerships lie in their tax structures and ownership requirements.

S corporations are a type of corporation that allows for pass-through taxation, meaning that the profits and losses of the business are distributed to the shareholders and reported on their individual tax returns.

On the other hand, C corporations are subject to double taxation, where the corporation itself is taxed on its profits, and the shareholders are also taxed on any dividends received.

Partnerships, on the other hand, are not separate legal entities and do not pay taxes themselves. Instead, the profits and losses are passed through to the partners, who report them on their individual tax returns. Additionally, partnerships can have different ownership structures, such as general partners who have unlimited liability and management control, and limited partners who have limited liability and no management control.