Taxes 🏛 IRS

Federal Income Tax — C Corporation

C corporations file Form 1120 and pay corporate income tax at a flat 21% rate on taxable income. Dividends paid to shareholders are also taxable to shareholders, creating potential double taxation. C corps may retain earnings for business growth.

Source Agency
IRS

Last Verified
March 1, 2026

Next Review
May 30, 2026

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