A C Corporation is one of the several ways to legally distinguish a business for tax, regulatory and official reasons. A C Corp is solely a method to build ownership of a business, and contrasts with other popular business structures together with Limited Liability Companies (LLCs), S Corporations, Sole Proprietorships and others. A C Corporation, also recognized as a kind of business entity that is established and organized on a state level.

The liabilities of the business are separate from the liabilities of the directors, investors and shareholders because a C Corp is a separate legal entity. A C Corporation may like to circulate some of the profits of the company as bonuses, which are circulated to shareholders.