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LSDefine

Simple English definitions for legal terms

C corporation

Read a random definition: confidentiality agreement

A quick definition of C corporation:

A C corporation is a type of company where the owners are called shareholders. The company is separate from the owners, which means it can make contracts and be responsible for its own debts. Shareholders can only lose the money they put into the company, and they get a say in how the company is run. However, the company has to pay taxes on its profits, and shareholders also have to pay taxes on any money they get from the company. This can make it more expensive to run a C corporation compared to other types of companies.

A more thorough explanation:

A C corporation is a type of legal structure for a corporation where the company's assets are separate from the owners' assets. This means that the owners, who are called shareholders, are not personally liable for the corporation's debts or legal issues. Shareholders contribute money or assets to the corporation, and in return, the corporation issues shares of its stock to the shareholders as evidence of ownership. Shareholders are entitled to any dividends the corporation pays, and if the corporation liquidates, they are entitled to all of the corporation's assets after all creditors are paid.

However, C corporations are subject to double taxation. This means that the corporation is taxed on its income, and then the shareholders are taxed separately on the income they receive from the corporation. This can be a disadvantage for some businesses.

For example, let's say that a C corporation earns $100,000 in a year. The corporation would pay taxes on that income, and then the shareholders would also pay taxes on any dividends they receive from the corporation. This can result in a higher overall tax burden for the corporation and its shareholders.

C corporations are the most common type of corporation, and they are often used by larger businesses or businesses with high-income owners. However, they can be more expensive to start and maintain than other types of businesses, and they are subject to more complex regulations and formalities.

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13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
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