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 enter contracts, sue or be sued, and own assets independently. C corporations are subject to corporate income tax on their profits, and any dividends paid to shareholders are also taxed, leading to what is known as "double taxation." C corporations can have an unlimited number of shareholders, making it easier to raise capital through the sale of stock. They are often preferred by larger businesses due to their ability to attract investment and provide limited liability protection to their owners, meaning personal assets are generally protected from business debts.