Corporation (C-Corp)

A Corporation, or C-Corp, is a more complex business structure that is often chosen by larger companies or those planning to seek funding. This structure allows the corporation to enter into contracts, incur debts, and be liable for its own actions independently of its owners.

C Corporations are required to adhere to more regulations and formalities compared to other business structures, such as LLCs or sole proprietorships. This includes holding regular board meetings, keeping minutes, and filing annual reports.

C-Corps are separate legal entities that provide the strongest protection against personal liability but are subject to double taxation, meaning that profits are taxed at both the corporate level and again when distributed as dividends to shareholders.

Despite this, the ability to issue stock and attract investors makes the C-Corp an ideal choice for businesses with ambitious growth plans.