Which type of corporation has no limit on shareholders?

• A. S-Corporation
• B. C-Corporation
• C. Non-Profit Corporation
• D. Limited Liability Company

Answer: (B)

A C-Corporation is characterized by its ability to have an unlimited number of shareholders. This structure allows for substantial capital raising through the sale of stock, making it an attractive choice for larger businesses seeking to grow and expand. C-Corporations also provide limited liability protection to their shareholders, meaning personal assets of the shareholders are typically protected from corporate debts and liabilities.

In contrast, an S-Corporation is limited to a maximum of 100 shareholders and has specific eligibility requirements, such as being a domestic corporation and having only allowable shareholders. Non-Profit Corporations focus on furthering a specific mission or cause and typically do not have shareholders in the traditional sense, instead relying on donations and grants. Limited Liability Companies (LLCs) offer flexibility for management and ownership structures, but they are distinct from corporations and also do not issue shares.

Understanding the characteristics of these different entities is crucial for making informed decisions regarding business structure and ownership implications.