The C corporations offer unlimited
growth potential through the sale of stocks, that means
you can attract some very wealthy investors.
Usually C corporations have higher number of
shareholders than other corporations because of the
following reasons.
- Since C corporation is expensive to start so
there is no limit to the number of shareholders in it can
have.
- Perpetual existence of it i.e., even if the
owner leaves the company the continuation of the business will not
be affected.So it is supposed to have huge number of
shareholders.
- When it comes to corporate ownership, C
corporation have no restriction on ownership, which supports them
having unlimited growth potential.
- In C corporation double taxation is inevitable
as revenue is taxed at the company level and again as shareholder
dividends.
So by enlarge the C corporations has no shareholders
limit. However, once the company has
$10 million in assets and 500
shareholders, it is required to register with the
SEC under the Securities Exchange
Act of 1934 which is a law in U.S.A.