This structure makes your business separate from the owners (the shareholders). That means the business can be taxed, make a profit, or be held legally liable for its actions separate and distinct from the shareholders. Because the IRS typically views a C-Corp as a separate entity for tax purposes, it can be taxed twice: once when the C-Corp makes a profit and again when dividends are paid to shareholders. For this reason, this structure offers the most protection for an owner's assets.