In many instances, C corporations can be more flexible than S corporations. For example,

• owners of C corporations can choose a fiscal tax year
• C corporations are not limited to the numbers or types of shareholders
• C corporations can deduct contributions to charities. Other types of business entities must pass charitable expenses through to the owners, who then might be able to deduct them on individual tax returns
• Until recently, C corporations enjoyed the most options in choosing retirement plans

Because of this flexibility, C corporations are the entity of choice for most tax-free mergers and acquisitions