C Corporation is any corporation that is not an S Corporation. These “regular” corporations are what you think of when you think of large public companies. They may be owned by a variety of shareholders, have corporate governance through a board of directors, and operate legally separately from the owners or the management. C Corporations file their own tax returns, pay their own taxes, and can also pay dividends to their owners, who are taxed separately from the corporation.
This is the default structure for a new corporation, although most small businesses with limited ownership will elect Subchapter S, or S Corporation status. However, there are a variety of reasons that a business might want to be a C Corporation from day one, especially with plans for outside investment or a need to fully separate the business from the owners.