A C corporation, or C corp, is a type of legal business entity. C corps are the default corporation type and a popular choice for startup founders. Other options include S corporations and limited liability companies (LLCs).
A C Corporation, commonly known as a C Corp, is a legal business structure that establishes a separate entity from its owners. This type of corporation offers limited liability protection to its shareholders, shielding personal assets from business debts and legal liabilities. C Corporations have the flexibility to raise capital through the issuance of stock, enabling them to attract investors and finance growth initiatives. While subject to double taxation (profits taxed at both the corporate and individual level), C Corporations enjoy advantages such as perpetual existence, potential tax savings through reinvestment, and enhanced credibility with stakeholders. Small business owners considering long-term growth and access to capital often opt for the C Corporation structure.