“C corporation” or “C corp” stands for “corporation.” The “C” comes from the fact that C corp income is taxed under the subchapter C of the Internal Revenue Code. That’s the law that responsible for the double taxation that C corps are known for, which we’ll go into more below. C corps are the most common type of corporation in the United States, but they may or may not be the best options for your startup!
Corporations are a business entities that exist entirely separately from their owners. They can be taxed, make a profit, and be held liable. In fact, they offer the highest level of protection from personal liability for the owners.
When it comes to stock, C corps can issue stock and shareholders can sell their stock a...