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C Corp
C Corporation accounting, taxation, and financial management
Why Your SaaS Can Owe State Tax on Sales You Never "Made" Anywhere: The Throwback and Throwout Trap
A throwback rule can push a home-state sales factor from 20% to 60% on the same revenue by adding untaxed 'nowhere' sales back to the numerator; throwout, which shrinks the denominator instead, takes it to 33%. About 20 states plus D.C. still throw back tangible sales, five repealed their rules since 2019, and P.L. 86-272 protects none of your SaaS receipts.
New Jersey Caps the NOL Deduction at $1 Million: What Corporations Need to Know for 2026–2030
New Jersey's A5322 caps corporate net operating loss deductions at $1 million per year for privilege periods ending July 31, 2026 through July 31, 2030, with public utilities exempt, a six-year carryforward extension for disallowed losses, an estimated-tax penalty safe harbor, and an 80%-to-75% limitation phase-down through 2032.
LLC vs. S-Corp vs. C-Corp: How to Choose (and Later Change) Your Business Structure
An LLC pays 15.3% self-employment tax on all profit; an S-Corp election (Form 2553) splits income into salary and distributions, typically saving $7,000+ once net profit clears $40,000–$60,000. Here's how all three structures compare — and how to switch later.
Colorado HB26-1289: Worldwide Combined Reporting Becomes the C Corp Default in 2027
Starting with tax years beginning January 1, 2027, Colorado's HB26-1289 makes worldwide combined reporting the default for unitary C corporation groups — foreign subsidiaries included. The water's-edge election that avoids it binds for ten consecutive years, and a tax-haven blacklist (Hong Kong, Ireland, the Netherlands, Singapore) pulls listed entities back in regardless. Here's who is affected and what records you need.
Cash vs. Accrual Accounting: How to Choose the Right Method (and When the IRS Forces Your Hand)
Cash accounting records revenue when money is received and expenses when paid; accrual accounting records revenue when earned and expenses when incurred. IRS Section 448 mandates the accrual method once a business's three-year average gross receipts exceed the $32 million threshold for 2026, and changing methods later requires Form 3115 plus a Section 481(a) adjustment.
The Section 1375 Sting Tax: How Former C Corps Pay 21% on Passive Income and Lose Their S Election After Three Years
Section 1375 imposes a flat 21% sting tax on S corporations that carry C-corp earnings and profits when passive investment income exceeds 25% of gross receipts, and three consecutive years over that threshold terminates the S election automatically. This guide walks through the excess net passive income formula, the three-year cliff under Section 1362(d)(3), and three planning moves to defuse exposure before year-end.
Section 302 Stock Redemption: How Closely-Held C Corporations Avoid Surprise Dividend Treatment
Section 302 of the Internal Revenue Code decides whether a closely-held C corporation's stock redemption is taxed as a capital sale or a full-amount dividend. This guide explains the three Section 302(b) tests, the Section 318 attribution traps that ensnare family-owned companies, the 10-year family-attribution waiver, and the partial-liquidation safe harbor under Section 302(b)(4).
Section 382: Why Acquirers Lose a Target's Net Operating Losses
Section 382 caps how fast an acquirer can use a target's net operating losses after an ownership change — annual limit equals the loss corporation's equity value times the long-term tax-exempt rate (about 3.58% in early 2026). Here is what triggers it and the legitimate workarounds.
Personal Holding Company Tax Under Section 541: The 20% Surtax That Quietly Ambushes Closely-Held C Corporations
Section 541 layers a 20% federal surtax on closely-held C corporations that fail both the stock ownership and 60% passive income tests. This guide walks through Schedule PH mechanics, the dividends-paid deduction, and four ways — cash, throwback, consent, and deficiency dividends — to zero out the tax before it hits.
Section 382 NOL Limitation After Ownership Change: How Venture-Backed Startups Preserve Net Operating Loss Carryforwards Through Equity Rounds
Section 382 caps a startup's pre-ownership-change net operating loss deductions at the pre-change fair market value multiplied by the long-term tax-exempt rate (about 3.56 percent in February 2026), triggered when 5 percent shareholders collectively gain more than 50 percentage points over a rolling three-year testing period.
Corporate Alternative Minimum Tax (CAMT): How the 15% Book-Income Levy on $1B+ Companies Actually Works
The Corporate Alternative Minimum Tax imposes a 15% levy on Adjusted Financial Statement Income for corporations averaging over $1 billion in AFSI. A practical guide to who qualifies, how AFSI is computed under section 56A, the FPMG $100M U.S. test, Form 4626 mechanics, and the interim simplified safe harbor.
FDII to FDDEI: How C Corporations Cut Federal Tax to 14% on Form 8993 in 2026
Under OBBBA, Section 250 renames FDII to FDDEI, sets the deduction at 33.34%, eliminates the QBAI offset, and removes interest and R&E allocation — producing an effective 14% federal rate on qualifying foreign-derived income for U.S. C corporations filing Form 8993 in 2026.