Both S-Corporations and C-Corporations are, at their core, corporations. They are both formed at the state level. The formation process, structure, and governance are usually identical for both. The difference is in how each entity is taxed at the Federal level. The name of each comes from Subchapter ‘C’ and Subchapter ‘S’, respectively, of Chapter 1 of the U.S. Tax Code (26 USC 1). When you form a corporation with your state and obtain an Employer Identification Number (EIN) from the IRS, it is by default a ‘C-Corporation’. You may then elect ‘S’ status by properly completing and filing IRS Form 2553. Once accepted, your corporation becomes an S-Corporation.