Explain the difference between an $S$ and a C corporation.

The profits and losses of the $$ are passed directly to shareholders and are not subject to corporate taxes, while the $$ must first pay taxes on any profits before passing the after$-$tax profits on to shareholders. In acidition, the $$ can have no more than $100$ shareholders, all of whom must be U$.$S$.$ citizens or residents. The does not have any such restrictions on its shareholders. $($Select from the drop$-$down menus.$)$