A C corporation (C corp) is a type of corporation that is taxed as a separate legal entity from its owners under Subchapter C of the Internal Revenue Code.
Key features:
The corporation pays corporate income tax on its profits, and shareholders may also pay tax on dividends (often called “double taxation”).
Offers limited liability protection for shareholders.
Can have unlimited shareholders and multiple classes of stock (common in venture-backed companies).
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
