how many shareholders can a c corporation have

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Expert Solution

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.

Colby Messinger answered 1 year ago

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