Which type of organization is characterized as a C-Corporation?

A C-Corporation is defined as a commercial corporation that operates under specific stockholder regulations. This type of organization is recognized as a separate legal entity from its owners, meaning it can own assets, enter into contracts, and be liable for its debts independently. C-Corporations are subject to corporate income tax and can have multiple classes of stock, which makes them different from certain other business entities.

The distinguishing feature of a C-Corporation is its ability to have an unlimited number of shareholders, which is essential for larger businesses seeking capital investment. C-Corporations also have the flexibility to raise funds by issuing various types of stock while adhering to strict regulations regarding governance and reporting.

In contrast, other organization types such as non-profits or private associations have distinct structures and operational priorities that do not align with the for-profit and regulatory characteristics of a C-Corporation. Non-profits focus on social causes and cannot distribute profits to members or shareholders, while a private association generally has limited membership and is not designed for profit generation. Lastly, an organization limited to one class of stock typically refers to an S-Corporation or LLC, which does not encompass the broader structure and operational framework of a C-Corporation.