C corporation

Definition

A C corporation is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. C corporations are subject to corporate income tax in addition to any taxes the shareholders pay on dividends they receive.

Related terms

Shareholder: An individual or entity that owns shares in a corporation and thus has partial ownership of the company.

Dividend: A payment made by a corporation to its shareholders, usually as a distribution of profits.

Corporate income tax: A direct tax imposed by a jurisdiction on the income or profit of corporations operating within its boundaries