A C Corporation is a type of business structure that is legally separate from its owners, known as shareholders. This means that the corporation itself can own assets, incur liabilities, and pay taxes independently of its owners. C Corporations are subject to corporate income tax on their profits, and shareholders are taxed again on dividends they receive, leading to what is often called "double taxation." C Corporations can raise capital more easily by issuing shares of stock, making them a popular choice for larger businesses. They also provide limited liability protection, meaning that shareholders are not personally responsible for the corporation's debts or legal obligations. This structure is governed by state laws and requires formalities like holding annual meetings and maintaining corporate records.