@coolbluefrog but C-corps also have disadvantages. profits are taxed federal and perhaps state. if the earnings are distributed there can be a second tax. there is IRC section 531 which imposes an additional tax of 20% on excess accumulated income if not paid out as dividends. admittedly the 531 tax is only assessed when the IRS determines that the accumulated earnings exceed the accumulated earnings credit and is in excess of the reasonable needs of the business. also if the item is saleable, there may be more net cash by selling than by donating.(the tax savings)
