The standard corporation, also called a C Corporation, is the most common corporate structure. To create a corporation, the proper formation documents, typically called the articles of incorporation or certificate of incorporation, must be filed with the appropriate state agency and the necessary state filing fees paid.

The corporation is a separate legal entity that is owned by shareholders. Because of this, the shareholders of a corporation typically cannot be held personally liable for the debts of the corporation. A shareholder's personal liability is typically limited only to the amount the shareholder invested in the company.

With corporations, taxation is one of the primary items often weighed. C corporations may experience double-taxation. The profits of the business are reported and first taxed at the entity level. If the corporation then distributes any portion of the remaining profit to the shareholders in the form of dividends, the shareholders must then report the dividend as personal income and pay taxes on it at the individual level. This creates the double taxation of the corporation's profits.

Some common advantages of a C corporation include:

Shareholders are not typically personally liable for the debts of the corporation.

C corporations can have an unlimited number of shareholders.

The ownership of the corporation is easily transferable through the sale of stock.

Corporations have unlimited life extending beyond the illness or death of owners.

Certain business expenses are tax deductible.

Additional capital can be easily raised through the sale of shares of the corporation's stock.

Some common disadvantages of a C corporation include:

The possibility exists for double taxation of the corporation's profits.

Corporations are more expensive to form than sole proprietorships and partnerships, and face ongoing filing requirements and state fees.

Corporations face ongoing corporate formalities, such as holding and properly documenting annual meetings of directors and shareholders.