5.1.2.4 C Corporations
Long before LLCs burst onto the scene as one of the favorite structural options for small business, corporations were the go-to structure for owners wanting to shield themselves from liability and raise additional money from investors. Further, until a few decades ago, most corporations that were set up were of one flavor, known as subchapter C corporations, or C-corps.
More than any other form of business ownership, C-corps are considered separate entities from the owners who have invested in them. In fact, C-corps always receive their own separate tax identification number and pay taxes as a separate taxpayer, which results in double taxation for the owners. This double taxation occurs when a corporation pays