Pros of a C corporation:

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Personal liability protection. Shareholders of a C corporation are not personally liable for business debts or legal actions. For example, if a tech corporation faces a lawsuit, the personal assets of its shareholders are generally not at risk.
Perpetual existence. C corporations continue to exist beyond the lifespan or departure of their founders or shareholders. This means a manufacturing corporation can continue operations indefinitely, even if its original owners retire or pass away.
Unlimited shareholders. C corporations can have an unlimited number of shareholders, allowing for significant growth and investment opportunities. This is ideal for large businesses like multinational retail chains that require extensive capital investment.
Cons of a C corporation:
Double taxation. Profits of a C corporation are taxed at both the corporate level and again laos rcs data as dividends to shareholders. This means a profitable software corporation might pay taxes on its earnings, and its shareholders also pay taxes on the dividends they receive.
Complex formation and maintenance. Establishing and running a C corporation involves considerable paperwork, formalities, and compliance with regulatory requirements. For a startup biotech company, this might include drafting bylaws, holding regular board meetings, and maintaining detailed records.
Shareholders’ limited influence. While shareholders in a C corporation are protected from personal liability, they may have limited control over day-to-day business decisions, especially in large corporations where management and ownership are separate. For instance, individual shareholders of a global fast-food corporation likely have little say in its daily operations.
7. S Corporation (S Corp)