---
title: What does it mean to elect corporate tax status?
description: Businesses that elect to become C Corps will face something in the United States called double taxation. Double taxation is the process of two taxation methods being applied to an entity, at the share
---
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# What does it mean to elect corporate tax status?
Businesses that elect to become C Corps will face something in the United States called *double taxation*.
*Double taxation* is the process of two taxation methods being applied to an entity, at the shareholder level and business level.
First, the corporation will pay income tax through the use of ***Form 1120*** which the entity will use to report their net profit and income tax liability for the year.
Then, the corporation also gets taxed at the shareholder level: any dividends or distributions from the corporation to any individual shareholder will be taxed through ***Form 1040*** as a receipt of dividends, like other miscellaneous income.
Corporations, like other companies, may also be responsible for estimated tax payments on a quarterly basis. Corporations pay this tax through ***Form 1120-W.***
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