The traditional corporate entity in the U.S. is known as the “C-Corp.” The C-Corp has been around for hundreds of years in various forms. The most well-known benefit of the C-Corp, for much of its existence, has been the personal liability protection it offers its directors, officers, and shareholders.

The C-Corp is also the go-to entity for startups looking to raise venture capital since it offers passive investors an opportunity to obtain equity without working the day-to-day operations.