A C-corp is a legal entity separate from its owners and shareholders. For this reason, owners and shareholders are not liable for the C-corp. C-corps create a double taxation situation because the corporation is taxed on its income, and owners/shareholders are taxed on their income at the personal level.
C-corps must hold at least one annual meeting. These annual meetings must be recorded for transparency (for investors). Percentage ownership within the company must also be disclosed. Bylaws must be kept at the company’s location. The corporation must file annual reports and related documents so investors can fully evaluate the performance of the company.