A C corporation is a US company taxed separately from its owners, meaning profits can be taxed at the corporate level and again when distributed as dividends. It issues stock, which makes it the standard structure for startups raising venture capital, usually incorporated in Delaware.
Why does C corporation matter for founders?
Choose it when fundraising is genuinely likely within a year or so. The double-taxation and formality are real costs for a business that never raises, but converting an LLC into an investable C-corp later is more expensive than starting correctly.
Where can I read more about C corporation?
Note: A plain-English definition for orientation, not legal or tax advice. Rules change - last checked 2026-07-21.