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 shareholders. C corporations can raise capital by selling shares of stock, making them a popular choice for larger businesses. One key feature of C corporations is double taxation. This occurs when the corporation pays taxes on its profits, and then shareholders also pay taxes on dividends they receive. Despite this, C corporations offer limited liability protection, meaning shareholders are not personally responsible for the company's debts.