A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners.
It is a legal way business owners can organize themselves to be protected as a corporation but taxed as an individual entity. The profits pass through to owners but the owner's legal and financial obligations are limited.
Due to it being considered by tax laws as its own legal "person", a C corporation can create contracts and do other business, start lawsuits or be sued itself. It is also responsible for paying taxes.
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