C Corporation

C-Corporation (C-Corp)

A C-Corp is its own legal “person.” It can enter contracts, own property, sue and be sued — completely separate from the owners (shareholders).

It has unlimited growth potential because there’s no cap on the number of shareholders.
It’s the only structure that can issue multiple classes of stock, which is why venture capitalists love it.
It must comply with state and federal corporate laws, which means regular board meetings, detailed record-keeping, and filing annual reports.

Limited Liability Protection: Owners’ personal assets are shielded from business debts and lawsuits.
Unlimited Shareholders: You can raise capital easily by issuing stock — no limits on how many investors can come aboard.
Attractive to Investors: Venture capital firms, angel investors, and institutional investors usually prefer C-Corps.
Perpetual Existence: The business continues even if an owner sells their shares or passes away.
Tax-Deductible Business Expenses: Salaries, benefits, and operating costs can be written off before corporate income tax is calculated.
Employee Benefits: Easier to provide health insurance, retirement plans, and stock options — making it appealing for recruiting talent.

Double Taxation (only if dividends are distributed): The company pays taxes on its profits, and shareholders pay taxes on dividends. (No dividends = no double taxation.)
General Compliance: Requires record-keeping, formal bylaws, annual meetings, and state filings. More rules than an LLC or sole proprietorship, but beneficial for business growth.
Startup and Ongoing Costs: Filing fees, legal expenses, and annual franchise taxes are often higher.
Decision-Making: With a board of directors and shareholders, decisions take longer than with smaller, owner-managed structures.

A C-Corporation is perfect for businesses that want to scale big, attract outside investors, and potentially go public.