{"ok":true,"canonical_url":"https://dealroom.so/glossary/c-corp","api_url":"https://dealroom.so/api/public/glossary/c-corp","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"c-corp","term":"C-Corp","group":"Reading the business","definition":"A standard corporation structure that is taxed separately from its owners. Profits are taxed at the corporate level and again when distributed to shareholders as dividends, leading to double taxation.","what_it_means":"While less common for small businesses due to the double taxation issue, some sellers may operate as C-Corps. This structure can complicate an asset purchase because the sale of assets by a C-Corp can trigger corporate-level taxes, significantly impacting the seller's net proceeds and potentially creating a valuation gap. Be sure to understand the specific tax implications for the seller in such a transaction.","url":"https://dealroom.so/glossary/c-corp","official_sources":[],"related":[{"slug":"s-corp","term":"S-Corp","url":"https://dealroom.so/glossary/s-corp"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"valuation-gap","term":"Valuation Gap","url":"https://dealroom.so/glossary/valuation-gap"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"question":"Can funds from a retirement account, like a 401(k), be used for my equity injection if rolled into a new C-corp via a ROBS plan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-retirement-account-like-a-401-k-be-used-for-my-equity-injection-if-rolled"},{"question":"Are there any specific business entity structures (e.g., LLC, S-Corp) required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-specific-business-entity-structures-e-g-llc-s-corp-required-for-an-sba-7-a-l"},{"question":"Can a foreign corporation own a minority (less than 20%) stake in an SBA 7(a) loan applicant business?","url":"https://dealroom.so/for-lenders/questions/can-a-foreign-corporation-own-a-minority-less-than-20-stake-in-an-sba-7-a-loan-applicant-b"},{"question":"Does my business need to be set up as an LLC or Corporation for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-set-up-as-an-llc-or-corporation-for-an-sba-7-a-loan"},{"question":"What specific conditions trigger the requirement for a corporate guaranty in addition to personal guarantees?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-trigger-the-requirement-for-a-corporate-guaranty-in-addition-to-p"},{"question":"Can a corporate entity provide a guaranty instead of a personal one for some minority owners?","url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-provide-a-guaranty-instead-of-a-personal-one-for-some-minority-owne"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — C-Corp","url":"https://dealroom.so/glossary/c-corp","source_type":"DealRoom Data"}}