Business Structure: C Corporation


A corporation is a separate and distinct legal entity created under state law and owned by its shareholders, and therefore protects its owners from personal liability for corporate debts and obligations (up to the amount invested in the corporation). A corporation by default (referred to as a C corporation) is taxed at two levels (i.e. double taxation). In other words, a C corporation pays a corporate tax on its corporate income (the first tax), and then, the C corporation distributes profits to shareholders who pay income tax on those dividends (the second tax).

Corporation formation requires filing with the appropriate state agency as well as a filing fee like an LLC and LP, but unlike a general partnership


  • Shareholders (owners) are only personally liable up to the amount invested in the corporation
  • Flexibility to allow owners to participate in the management of the business or to act solely as passive investors
  • No limits on the amount of shareholders
  • Ownership is easily transferred through the sale of shares
  • Most accepted business type for outside investors such as venture capitalists
  • Corporations continue to exist beyond the life of the owners


  • Have rigorous ongoing business requirements such as annual reports, holding shareholder and board of director meetings
  • Are subject to double taxation
  • More expensive to form and maintain than sole proprietorships and general partnerships



Our U.S. Incorporation Services

USA Flag MapOur company is an independent business services and we are not affiliated with any state or government agency. We offer professional business filing services that ensure your company is accurately filed and in compliance.

We provide full service of forming your company, which includes everything from drafting and filing the Articles with the state for your choice, providing registered agent in any of the 50 state and DC, obtaining EIN for non-US owners, drafting Operating Agreement, obtaining all necessary licenses and tax IDs, certifying your company documents for foreign use, and more.

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Onbic has three incorporation packages to fit your specific business needs.
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