C-Corporations (C-Corp)
01.The Standard Corporate Structure
A C-Corporation is a completely separate legal entity owned by shareholders. It is the preferred structure for startups seeking venture capital or intending to go public.
02.Access to Venture Capital
Venture capitalists almost exclusively invest in Delaware C-Corporations due to the predictable legal system, flexible share classes, and ability to issue stock options to employees.
03.The Double Taxation Challenge
A C-Corp pays corporate income tax (Form 1120) on its net profits. When profits are distributed to shareholders as dividends, shareholders pay tax again on their personal returns, resulting in double taxation.