What Is C-Corporation? Definition

What is a C corporation?

A C corporation is a corporation that is treated as a separate taxpayer from its owners. Its shareholders can also be taxed on dividends they receive, which is why the structure is often described as having two layers of tax.

Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that keeps corporate records, equity accounts, and shareholder transactions organized, so the corporation's books support its filings.

What to keep

Stock and equity records, including issued shares and contributions
Board and shareholder approvals for key decisions
Separate records of dividends and wages paid to owner-employees

Why it matters for service firms

Corporations carry more formal record-keeping than simpler structures. Clean books and minutes make audits, financing, and a future sale much smoother.

Frequently asked questions

How is a C corporation different from an S corporation?

Both are corporations under state law. They differ in how they are taxed, and an S corporation passes income through to owners. See pass-through entity and ask your tax professional which fits.

Why do corporations keep formal minutes?

Minutes document major decisions and approvals, which supports governance, lenders, and legal compliance. Your attorney can advise on what to record and how often.

Official source: IRS: Forming a corporation.

This page is for informational purposes only and does not constitute formal legal or tax advice. Always consult a qualified tax professional about your specific situation.

This page is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.

C-Corporation