Jul 08 2010

What is a C corp? C corporation?

Category: Business & Economy

Answer:

A C corporation, or C corp, is the most common type of corporation formed for larger businesses. Smaller business will usually opt for S corp status. A C corp has the advantages of limited liability, unlimited owners, transferring ownership, raising capital, and other tax benefits. Shareholders get the majority of benefits from owning this business type. Shareholders will be taxed based upon distributed dividends and capital gains if they sell the stock. Double taxation is one of the drawbacks to this form of incorporating and is often seen when the corporation distributes dividends.


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