When registering a company, C corporation or C corp is the most common corporation
type, but it isn’t always the top choice for small business owners. C corporations provide
limited liability protection to owners, who are called shareholders, meaning owners are
typically not personally responsible for business debts and liabilities. C corporations may
also offer greater tax advantages because of an expanded ability to deduct employee
benefits, which are most often used by growing businesses.

C corporations are more flexible than S corporations in terms of the number of owners
(shareholders) they can have and who can be an owner. That is one reason why C
corporations are the business type of choice for venture capitalists when they provide f
unding to a business.

Corporations face the most extensive ongoing formalities of any business type. Corporations
must adopt and regularly update bylaws, hold and properly document annual meetings of
directors and shareholders and more.