Most major companies and many smaller companies are treated as C Corporations (or C-Corps) for US federal income tax purposes. These are distinguished from S corporations or Limited Liability Companies, or LLCs, because those corporate entities are not taxed and the shareholders or members themselves are responsible for paying their proportion of the income earned by the S Corp or LLC. Like those other entities, however, C-Corps do provide their owners with limited liability protection.

Last reviewed: May 10, 2021