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What is a C corporation?

A C corporation is the corporate form that most corporations are organized and run as. A C corporation, like all of the corporate forms, is a separate legal and tax-paying entity from its owners, meaning that the standard double taxation applies - that is, the corporation pays its own taxes on its profits and losses, and its owners/shareholders pay individual taxes on the corporate profits/losses distributed to them. This differs from an S corporation, which uses the pass-through taxation that applies to most partnerships.