A C corporation (or C-corp) is a corporate legal structure in which the owners, or shareholders, are taxed separately from the entity. C corporations, the most common type, are also subject to corporate income taxation. Profits from the business are taxed at both the corporate and personal levels, resulting in a scenario of double taxation.
C-corps are similar to S corporations and limited liability companies (LLCs), both of which separate a company's assets from its shareholders but with differing legal forms and tax treatment. The B-corporation (or benefit corporation) is a newer type of organization that is for-profit but differs from C-corps in purpose, accountability, and transparency but not in taxation.
A C Corporation legally separates the assets and income of the owners or shareholders from those of the corporation.
C companies limit the liability of investors and business owners because the most they may lose in the event of a business failure is the money they invested in it.
C corporations must hold annual meetings and have a board of directors elected by shareholders.