Business Entities

C-corp

A C-corp is a corporation taxed separately from its owners at the entity level.

Quick answer

A C-corp is a corporation taxed separately from its owners at the entity level.

It matters because the tax rules, owner compensation choices, and exit planning look different from pass-through structures.

A venture-backed startup is often organized and taxed as a C-corp.

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Plain-English Definition

What C-corp means

A C-corp is a corporation taxed separately from its owners at the entity level.

Why it matters It matters because the tax rules, owner compensation choices, and exit planning look different from pass-through structures.
Simple example A venture-backed startup is often organized and taxed as a C-corp.
Related Questions

Questions people ask about C-corp

What does C-corp mean?

A C-corp is a corporation taxed separately from its owners at the entity level.

Why does C-corp matter?

It matters because the tax rules, owner compensation choices, and exit planning look different from pass-through structures.

What is a simple example of C-corp?

A venture-backed startup is often organized and taxed as a C-corp.

When should I ask a CPA about C-corp?

Ask a CPA when the term affects how your business is taxed, how owners are paid, or whether an election could reduce tax.

How is C-corp different from S-corp?

C-corp means A C-corp is a corporation taxed separately from its owners at the entity level. S-corp means An S-corp is a tax election that allows qualifying businesses to pass income through to owners while splitting owner pay between salary and distributions when the facts support it. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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