What is a C Corporation?
A C corporation is the most common type of corporation. The “C” refers to the subchapter of the Internal Revenue Code which explains the rules of taxation for this type of business structure. C corporations may have any number of investors and it can, therefore, be easier to raise the capital necessary to operate the business. Since the number of investors is not limited, C corporations can offer stock incentives to their employees. Corporate owners usually do not have personal liability for corporate debts or negligence. Some businesses also find that it is less expensive to provide health insurance and retirement benefits for employees if their business is properly incorporated as a C corporation.
Other Corporate Law FAQs
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Q:
What is an S Corporation?
A: There are several different types of corporations from which business owners can choose when they initially set up their business. One type of corporation is an … More -
Q:
What steps are required to form a corporation?
A: A corporation is a legal entity with a corporate charter from a state. To form a corporation, the following simple steps are required: 1. Select a name for your … More -
Q:
What is a shareholder derivative action?
A: Shareholders have a limited right to participate in the governance of a corporation. Even if a shareholder believes that corporate management has abused its power or … More
