What is a C Corporation?
A C corporation (or C-corp) is a corporate legal structure in which the owners, or shareholders, are taxed separately from the entity. C corporations, the most common type, are also subject to corporate income taxation. Profits from the business are taxed at both the corporate and personal levels, resulting in a scenario of double taxation.
C-corps are similar to S corporations and limited liability companies (LLCs), both of which separate a company's assets from its shareholders but with differing legal forms and tax treatment. The B-corporation (or benefit corporation) is a newer type of organization that is for-profit but differs from C-corps in purpose, accountability, and transparency but not in taxation.
A C Corporation legally separates the assets and income of the owners or shareholders from those of the corporation.
C companies limit the liability of investors and business owners because the most they may lose in the event of a business failure is the money they invested in it.
C corporations must hold annual meetings and have a board of directors elected by shareholders.
Desc: A C corporation is a corporate legal structure which separates the assets and income of the owners or shareholders from those of the corporation. It limits the liability of investors and business owners, and must hold annual meetings and have a board of directors.