What is a C Corporation?

A C Corporation (C Corp) is a type of business structure in the United States that is taxed separately from its owners. C Corps are the most common type of business structure, and can be established by filing articles of incorporation with the secretary of state in the state in which the business will be located. C Corps are separate legal entities, meaning they can be held liable for their own debts and obligations, and can enter into contracts, own property, and sue or be sued.

What is the Difference Between an S Corp and C Corp?

The primary difference between an S Corp and a C Corp is the way they are taxed. C Corps are taxed at the corporate level, meaning the company pays taxes on its profits. Any profits that are distributed to shareholders are then taxed again at the individual level. S Corps are pass-through entities, meaning the company does not pay taxes at the corporate level, and instead any profits are distributed to shareholders and taxed at the individual level.

Is a C Corporation the Same as an LLC?

No, a C Corporation is not the same as an LLC. LLCs are pass-through entities, meaning the company does not pay taxes at the corporate level, and instead any profits are distributed to members and taxed at the individual level. C Corps are taxed at the corporate level, meaning the company pays taxes on its profits. Any profits that are distributed to shareholders are then taxed again at the individual level.

What are Examples of C Corporations?

Some of the most well-known C Corporations in the United States include Apple, Microsoft, Amazon, Walmart, and Coca-Cola. These companies are all publicly traded, meaning their shares are listed on a stock exchange and can be bought and sold by the public. Other examples of C Corps include privately held companies such as Google, Uber, and SpaceX.