A C Corporation is a completely separate tax and legal entity from its owners, and owners who work in the business are treated and taxed as employees of the corporation (Note: The “C” in C Corporation refers to a subchapter of the tax code; C corporations are one of the most common types of corporations, and they are frequently referred to generically as corporations).
C Corporations are liable to corporate income taxes separate from the owners, although most other types of business entities enable the company earnings to "pass-through" to the owners' personal income tax statements.
As a result, C Corporations are the most formal company structure and have more tax reporting obligations than other business organizations. Profits can be maintained in the firm if desired, and these profits are usually taxed at a lower rate than personal income. C Corporations can also distribute after-tax income to its shareholders in the form of dividends, although this might result in double taxation.