C corp
Business & Finance abbreviation · Company Type
| Stands for | C corporation |
|---|---|
| Categories | Business & Finance |
C corp stands for C corporation, a company type abbreviation.
Standard US corporation taxed separately from its owners under Subchapter C of the Internal Revenue Code, paying corporate income tax on its profits, with shareholders taxed again on dividends. Most large and venture-backed companies are C corporations.
Example: Investors required the startup to be a Delaware C corp before they would sign the term sheet.
Usage notes
The federal corporate tax rate has been a flat 21 percent since the Tax Cuts and Jobs Act of 2017. C corporations can have unlimited shareholders and multiple classes of stock, which suits venture capital financing. This "double taxation" of profits and dividends is the main drawback compared with pass-through entities.
Related abbreviations
More company type abbreviations
- AS – Aksjeselskap / aktsiaselts (limited company)
- ASA – Allmennaksjeselskap (public limited company)
- B Corp – Certified B Corporation
- Bhd – Berhad (public limited company)
- bros. – Brothers
- BV – Besloten vennootschap (private limited company)
- CIC – Community interest company
- Cie – Compagnie (company)
- CIO – Charitable incorporated organisation
- Co-op – Cooperative
- Co. – Company
- Co., Ltd. – Company limited