C Corporation (C Corp)

A C corporation (also known as a C corp) is a type of business entity that is taxed as a separate entity from its owners. C corps are formed by filing articles of incorporation with the state government, and they are owned by shareholders who elect a board of directors to oversee the management of the company. C corps are the most common type of corporation, and they are subject to corporate income tax on their profits. The shareholders of a C corp are also subject to personal income tax on any dividends they receive from the company. C corps offer several advantages, including the ability to raise capital through the sale of stock, limited liability protection for shareholders, and the potential for favorable tax treatment. However, they are also subject to more complex tax and regulatory requirements than other business structures.