C Corporation

C Corporation

A C Corporation is a legal business structure in which the owners, or shareholders, are taxed separately from the entity. This type of corporation is considered a distinct legal entity, which means it can enter into contracts, sue, and be sued independently of its owners.

C Corporations are subject to corporate income tax on their profits, and if those profits are distributed to shareholders as dividends, the shareholders are taxed again on their personal tax returns, leading to "double taxation." This structure allows for an unlimited number of shareholders and provides limited liability protection to its owners, meaning their personal assets are generally protected from business debts and liabilities.

Examples of C Corporations include large publicly traded companies such as Apple Inc. and Microsoft Corporation.