C Corporation

See Also:
S Corporation
Limited Liability Limited Partnership (LLLP)
Cooperative (co-op)
Limited Liability Company (LLC)
Sole Proprietorship
S Corporation vs C Corporation
Conglomerate Definition

C Corporation Definition

The C Corporation definition (C-corp) is a form of business which is owned by several C-corp shareholders or holders of stock within the company. Many larger businesses adopt this model so that they can receive the large amount of financing needed to grow the company further.

C Corporation Explained

A C-corp is formed when a group puts together articles of incorporation and files these with a state. Some states carry more benefits, like Delaware, making it more appealing to set the corporation up through that state. Once articles of incorporation have been filed with the state then the C corporation receives its status as an official corporation when it gets a certificate approving the articles. The company can then issue shares to the general public after all financials are in compliance with GAAP. C corporations are the only type of entity stock exchanges list.
C corporation advantages include limited liability for management running the company. However, management is liable to answer to a Board of Directors who are responsible for ensuring that the company is acting in the best interest of shareholders. This means that a C-corp’s number one goal is to maximize shareholder wealth.
C corporation disadvantages are that the entity can receive double taxes. C-corp double taxation occurs when a company is taxed as a legal stand alone entity. Then the second tax comes if the C-corp issues dividends to its shareholders. Despite this disadvantage the C-corp is one of the most common business forms for larger companies.
If you want to learn more financial leadership skills, then download the free 7 Habits of Highly Effective CFOs.
c corporation

[box]Strategic CFO Lab Member Extra
Access your Flash Report Execution Plan in SCFO Lab. The step-by-step plan to manage your company before your financial statements are prepared.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]

c corporation

ARTICLES YOU MIGHT LIKE

Mining the Balance Sheet for Working Capital

Mining the Balance Sheet for Working Capital Let’s face it… There has been significant liquidity in the marketplace over the past couple of years. Debt and equity capital has been relatively easy to find and commercial banks have been very willing participants as capital providers; however, many of the commercial banks have admitted that this robust marketplace

Read More »

Is Your Business Bankable?

Businesses call us for many reasons but here are two very common reasons why we get called… They are growing and want to strengthen the financial function. OR They are in financial distress and can’t find a way out. Why does a business need to be bankable? What does being bankable mean? In this blog,

Read More »

Alternative Forms of Financing

It happens all the time. Companies need capital, but they aren’t bankable. Banks or other financial institutions will not touch them because they are either too risky, not able to meet covenants, or it just doesn’t work out for some reason. So, where do those companies go? They need to look at alternative forms of

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

September 12-15th 2022

Days
Hours
Min
SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES

Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®

Days
Hours
Min

February 27 - March 2, 2023

Skip to content