Unless you are operating a huge business, C Corporations are probably not for you – and, if you are reading this on our website, you are probably not involved with a huge corporation.
A general corporation, also known as a “C” corporation, is the most common corporate type but is used by larger corporations. A general corporation may have an unlimited number of stockholders. A C Corporation is normally chosen by those businesses that are planning to have more than 30 shareholders or planning a large, public stock offering. These general corporations usually pay taxes at two levels. First, the corporation is required to pay taxes based on the corporation’s profits. Additionally, the owner or shareholder is taxed when the corporation distributes profits, known as dividends, to the individual.