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