C-Corporation

Also called C-Corp

A C-corporation: a US company structure taxed separately from its owners, able to issue multiple classes of stock. The standard structure for venture-backed startups.

Why it matters

VCs almost always require a C-corp because it supports preferred stock, option pools, and clean equity. If you plan to raise US venture money, incorporating as a Delaware C-corp is usually expected from the start.

For example

A startup planning to raise US venture money incorporates as a Delaware C-corp, because that is the structure investors expect for preferred stock and options.

Go deeper

Stripe Atlas: Incorporate Your Startup (Delaware C-Corp) Stripe Atlas · guide The canonical way founders set up a C-Corporation, plus a plain explainer of why it is the structure investors expect. Open stripe.com →

Related terms

Also in Starting Up

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

eChai Partner Brands