A C-Corporation is a US company taxed as its own legal entity, separate from its owners. It pays a flat 21% federal corporate income tax on profits, and a second tax can apply when profits are paid out to shareholders as dividends.
How a C-Corporation works
The defining feature is that the company is taxed in its own right.
The corporation files its own return and pays 21% federal corporate income tax on its profits. When those after-tax profits are distributed to shareholders as dividends, the shareholders are taxed again on what they receive. That two-layer outcome is what people mean by "double taxation," and it is the main trade-off of the structure.
In return, a C-Corp offers what investors expect: limited liability, an unlimited number of shareholders, multiple share classes, and the ability to issue stock and options. Most are incorporated in Delaware, whose corporate law and courts are the default standard for venture financing.
Why it matters for a global or India-based founder
If you plan to raise from US or institutional investors, a C-Corp is usually the expected entity.
VCs and accelerators almost always require a Delaware C-Corp, since it supports priced rounds, SAFEs, and stock options cleanly.
It scales to many shareholders and multiple share classes, which an LLC handles poorly.
The trade-off is cost and the 21% corporate tax layer, so it is overkill for a solo or bootstrapped founder who just wants to get paid by US clients.
As a non-resident owner, the C-Corp itself does not remove your US filing duties. You still need an EIN to open a US business bank account, and the corporation files its own Form 1120 each year. India-based founders should also plan for double-tax relief through the India-US DTAA when profits flow home.
Where it fits with StableCorp
StableCorp forms Delaware C-Corps for VC-track founders, and Wyoming LLCs for solo or bootstrapped ones, then runs the full path: EIN, US bank account, and USD plus USDC/USDT payments on compliant rails.
If your goal is simply to invoice US clients and receive USDC payments, an LLC is often the cheaper fit; if you are raising venture capital, the C-Corp is worth the overhead. We help you pick and file either, and we off-ramp to INR on compliant, purpose-code rails rather than the grey-area direct-wallet route. See pricing.
This is general information, not tax or legal advice.
Sources
IRS — About Form 1120, U.S. Corporation Income Tax Return — https://www.irs.gov/forms-pubs/about-form-1120
IRS — Forming a Corporation — https://www.irs.gov/businesses/small-businesses-self-employed/forming-a-corporation