Glossary · Reading the business
In short
A standard corporation structure that is taxed separately from its owners. Profits are taxed at the corporate level and again when distributed to shareholders as dividends, leading to double taxation.
While less common for small businesses due to the double taxation issue, some sellers may operate as C-Corps. This structure can complicate an asset purchase because the sale of assets by a C-Corp can trigger corporate-level taxes, significantly impacting the seller's net proceeds and potentially creating a valuation gap. Be sure to understand the specific tax implications for the seller in such a transaction.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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