C-Corporation - ENGAGE CPAs

A Corporation is a legal structure for a company that taxes the owners/shareholders separately from the business. This is the only entity setup where tax is paid on business profits at the business level. All other entities pass through the income to the owners on their personal tax return.
A C-Corporation's profits are taxed at the business level, and the owners are taxed on the wages they’re paid from the business and the dividends they distribute to themselves. This is where double taxation comes in, business taxes are paid on the profits and then those profits are taxed again when the owners take distributions/dividends.
A C-Corporation legally separates the owner's assets from the corporation and it limits the liability of investors since the most they can lose is what they’ve invested. A C-Corporation must file a tax return, Form 1120, every year. Based on the income earned the corporation will pay tax on the profits with the filing of the 1120 tax return.
Owners can pay themselves by paying themselves a W-2 salary and by taking dividends. But remember, every dollar you take out of the corporation will also be taxed on your personal tax return.