C Corporation

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).