A corporation is a legal entity which exists separately from its owners. The corporation offers the benefit of limited liability, asset protection and ease of ownership. The owners of a corporation are shareholders, the management is known as officers and directors.
The C Corporation is taxed at two levels. First, the corporation pays corporation taxes on corporate profits. Then, the corporation may distribute profits to the shareholders. These profits, or dividends, are taxed to the shareholders. Despite the double taxation, C Corporations offer many planning and benefit opportunities.