Is a legal form of business entity able to have unlimited number of stockholders (both residents and non-residents). Income of a C-corporation is a subject to corporate taxation.

• Liability. Liability of company’s owners is limited. Shareholders, in case of corporate bankruptcy, lose only their contributions. When requirements of all creditors are satisfied and company still have assets, shareholders stakes can be returned partially or in a full.
• Income taxes. C-corporation’s income is a subject to corporate taxation. After the corporate tax is subtracted, net income can be paid out to shareholders as dividends. When they receive their part of the corporate income, they are obliged to pay personal income tax. Thus, income of a corporation is a subject to “double taxation”.
• Longevity. The life period of C-corporation is unlimited. C-corporation can exist if it is able to make profit and cover all its debts. Shareholders death of intention to leave the company won’t lead to the dissolution of the company. Stakes in capital can be easily transferred to another party.
• Control. Usually company’s shareholders do not manage company’s business directly. They control the company, electing the board of directors, which has direct control on the company. But shareholder can still manage company directly if he/she was elected as a member of the board of directors.
• Profit retention. Company’s net profit can be used in two ways: either it will be invested in business or it will be paid out in the form of dividends to stockholders. Each stockholder get amount of company’s profit according to his/her stake in company’s capital.
• Location. Location of company’s subsidiaries and branches doesn’t influence on the amount of paid taxes. Corporate tax is equal for all states.
• Convenience. The major advantage of the C-corporation is easiness to raise additional funds. It can make it just with an issue of stocks. Another advantage is company’s ability to operate even if stakeholders leave he company.
• Burden. The main burden of corporation is “double taxation”, which takes substantial amount of profit from shareholders. The other disadvantage is complexity registration and its high costs.