“C” corporation – n : the most common legal form of
organization for a company. Virtually all
established
companies of any meaningful size, as well virtually all startups that seek
outside investment capital (venture capital), take this form (as opposed to
other legal forms such as an “S” corporation, LLC or LP). Though the income of
“C” corporations is subject to double taxation (federal and state governments
tax a corporation’s earnings as well as dividends distributed by the
corporations to shareholders ), many venture-fundable companies chose this
structure because it is advantageous from a long-term capital gains perspective
for tax purposes.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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