Series 79: C Corporations

C Corporations

A C corporation, or C corp, is what most people think of simply as a corporation. (The “C” in the name refers to the subchapter of the Internal Revenue Code that deals with corporate taxation.) The corporate form is by far the most prevalent organizational structure for large and medium-sized businesses, especially publicly held businesses, and for many small businesses as well.

In the United States, a corporation is created by incorporating (filing articles of incorporation) in the state of its choice. The state of incorporation is typically either the state where the corporation’s headquarters are located or a state such as Delaware with a well-developed body of corporate law. Once created, the corporation can operate anywhere, subject to compliance with federal law and the laws of individual states and other jurisdictions.

When a corporation is created, it issues shares of stock. The corpora