Corporations are the most complex business structure in the US. Like an LLC, a corporation is a separate legal entity from its shareholders. However, unlike an LLC, ownership is designated by the number of shares of the company stock owned by a party. There are two types of corporations which differ in how they are taxed. A C-Corp is taxed as a separate entity and the business needs to file its own tax return. As such, a C-Corp is subject to double taxation: the corporation needs to pay corporate tax income tax on its profits and the shareholders need to pay personal income tax on the profits distributed to them by the corporation. Whereas an S-Corp can choose to pass on the corporate income to the shareholders who then pay federal income tax through their individual tax return. However, an S-Corp is still required to declare its income, losses, deductions etc. through form 1120S. A corporate legal structure is best suited for larger established companies with multiple employees. It’s an especially good option for businesses looking to raise large amounts of capital from multiple investors.