An ownership structure that allows any number of individuals or companies to own shares. A C corporation is a stand-alone legal entity so it offers some protection to its owners, managers and investors from liability resulting from its actions. A C Corporation is a company whose federal income tax status is subject to Subchapter C of the Internal Revenue Code. C corporations owe federal income taxes based on the income of the company as an entity, and the taxes are paid by the company. Unlike the stockholders of an S corporation, the stockholders of a C corporation do not pay taxes on the corporation's income. See S corporation.