What advantage does a C Corporation provide?

A C Corporation provides significant advantages, one of the most important being limited liability for debts and actions. This means that the personal assets of the shareholders are protected from the company's liabilities and debts. If the corporation faces lawsuits or defaults on its obligations, the shareholders’ risk is limited to the amount they have invested in the corporation. This protection encourages investment and entrepreneurship, as individuals can engage in business activities without fearing that their personal finances are at stake.

The other aspects mentioned in the question do not reflect the benefits associated with C Corporations. For example, direct income taxation does not serve as an advantage; in fact, C Corporations are subject to double taxation, where the corporation pays taxes on its profits, and shareholders then pay taxes on dividends received. Increased management control is more characteristic of other structures, like sole proprietorships or partnerships, where owners maintain direct oversight. Unlimited personal liability is a disadvantage associated with sole proprietorships or general partnerships, rather than C Corporations. Therefore, the limited liability is a cornerstone advantage, making C Corporations a popular choice for business owners looking to protect their personal assets.