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 ta

before passing the after$-$tax profits on to shareholders. In addition, the

can have no more than $100$ shareholders, all of whom must be U$.$S$.$ citizens

does not have any such restrictions on its shareholders. $($Select from the drop$-$down menus.$)$