What is a C Corporation?
A C Corp is legal structure that businesses establish that is a separate entity from the owners and the people that manage it. Corporations are owned by their shareholders, and provide owners limited liability. C Corporations are the most widely type of entity for businesses large and small that have shareholders.
What's the difference between a C Corp and an S Corp?
All corporations both S and C are started as a C Corp. Once the C corp is formed the business has 75 days to to elect to become an S Corporation. This election is done with the IRS. More information abour S Corporations can be found Here.
Some things to know if you're thinking about starting a C Corporation
- C Corporations may have an unlimited amount of shareholders
- Owners do not need to be citizens or residents of the United States
- C Corporations shares may be owned by another business
- C Corporations are required to have bylaws, hold annual meetings and keep accurate record of the meeting minutes.
- Corporations can raise capital by through the sale of their stock.