A Corporation is an entity formed under a government body (state, federal, local foreign jursidiction law) by the filing of Articles of Incoporation with that governmental body. Corporations are subject to income tax at the entity level and then subsequently at the owner (shareholder) level when income is actually distributed as a dividend to the owner.
A Corporation is any of the following:
- A business entity organized under a federal or state statute as incorporated or as a corporation.
- An association.
- A business entity organized under a state statute as a joint-stock company or jointstock association.
- An insurance company.
- A state-chartered business entity conducting banking activities, if any of its deposits are insured under the Federal Deposit Insurance Act.
- A business entity wholly owned by a state, foreign government, or any other government entity.
- A business entity that is taxable as a corporation.
- A foreign business entity.
- An entity created or organized under the laws of more than one jurisdiction (business entities with multiple charters) if the entity is treated as a corporation with respect to any one of the jurisdictions.
- Per se corporation that is automatically classified as a corporation and found on the list found in Treas. Reg. 301.7701-2(b)(8). Corporations (also known as associations) are subject to income tax at the entity level and then subsequently at the owner (shareholder) level when income is actually distributed to the owner.
Citations: Association – Treas. Reg. s. 301.7701-3 Government Entity – Treas. Reg. s. 1.892-2T. Foreign business entity – Treas. Reg. s. 301.7701-2(b)(8) See Definition