A C-Corporation can also be referred to as a regular corporation. In a C- Corporation the business is looked at as if it is an individual. The corporation is responsible for all taxes on its tax return, as well as held liable for any damages caused by the corporation. A corporation sells shares of its stocks. The shareholders are who are in charge of how the corporation is run. They decide who is in charge of the day to day activities but still hold a vote in theoperation of the company.

In a C-Corporation the corporation is held liable for any and all business dealings it participates in. If a debt is owed then the corporation, not the shareholder, pays the debt. Income Taxes are filed by the C-Corporation as the corporation. They must file in the state that they are incorporated in as well as states that they do business in. They are also required to follow federal guidelines for corporate taxes. It is also important to note that in C-Corporations the profits are taxed twice before getting to the shareholder.

A corporation is ongoing. It exists as long as there are shareholders. The company can change hands and still be the same corporation. The most common reason for a corporation to dissolve is bankruptcy. Corporations can also be bought out, the corporation can stay as is or can be absorbed by the company that purchased them.

The shareholders have the control in a C-Corporation. They vote on different business activities that the company should take part in as well as who should be in charge of these activities. Corporations can have many shareholders. Shareholders that hold the majority of shares also hold the majority of the voting power. The profits are split among the shareholders in the corporation based on how many shares that they hold.

A corporation may become incorporated in any state that they choose. They do not actually need to be located in that state, but will at least need to have a proxy in that state to handle mail and any inquiries that are made of the corporation. A corporation may also choose to do business in any state that they choose, granted that they follow the rules of that state government for doing so.

These are the basics of a C- Corporation and what the tax benefits can be if this is your chosen business model.