When you charter corporation, the default designation is C-Corporation. This means that the corporation can own assets, enter into contracts, and take legal action, just like an individual person. The main characteristic of C-Corporation is that it is subject to corporate income tax on its profits, which are taxed separately from the personal income of its shareholders. Another unique feature of C-Corporation is that it can issue multiple classes of stock, which allows for greater flexibility in raising capital and distributing ownership.
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