Ccorporations

A C corporation, often referred to as a C-corp, is a legal business structure that is separate and distinct from its owners. This separation means that the corporation itself is responsible for its own debts and liabilities, protecting the personal assets of its shareholders. C corporations are established by filing articles of incorporation with a state government.

One of the defining characteristics of a C corporation is its tax treatment. Profits are taxed at the corporate level, and then any dividends distributed to shareholders are taxed again at the individual level. This is commonly known as double taxation. However, C corporations can offer more flexibility in terms of ownership structure, allowing for an unlimited number of shareholders, and can more easily raise capital through the sale of stock.

Ownership in a C corporation is represented by shares of stock, and shareholders have limited liability, meaning their personal financial risk is generally limited to the amount they have invested in the company. C corporations are subject to more complex regulatory requirements and compliance obligations compared to other business structures. They can exist indefinitely, meaning their existence is not tied to the lifespan of its owners.