What is a Delaware C-corp?

A Delaware C-Corporation refers to a corporation formed within Delaware pursuant to Subchapter C of the Internal Revenue Code. This is most conventional type of corporation.

Some notable features of a C-Corporation include:

  • The corporation is owned by shareholders of corporate stock and there is no limit on the number of shareholders.
  • The corporation is a separate legal entity from its owners which provides limited liability.
  • Corporations are subject to tax at the corporate tax rates. This is often referred to as double taxation because the profits are taxed again when distributed to shareholders.
  • Corporations have perpetual existence even if the owner leaves the company.

Choosing a business entity type is a crucial decision for your business and one that you should not make alone. LawTrades can connect you with one of our vetted business attorneys for a free 20 minute consultation to determine how he or she can help you structure your business. That attorney can also help you set up your corporation and handle all post-incorporation activities.