Small Business Investing

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Why would someone want to own a C corporation?

C corporations allow owners to have more than one hundred shareholders, to issue different classes or types of stock to shareholders, and to have foreign shareholders. This makes the corporate entity more attractive to a broader group of people, helping the C corporation attract more capital (by selling different types of shares) without having to borrow money from other sources to fund its growth in exchange for partial company ownership. But this also obligates the company to provide a certain level of return on its shareholders’ investment, and listen to many more voices when managing the company. Because of its broader appeal and more activity, the company can be perceived as having more value, since there is very little commingling between individual owners and the corporation.


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