A C-Corporation is the standard corporation. It is owned by shareholders and is subject to federal securities laws, with limited exceptions. A board of directors is appointed that is required to hold annual meetings and keep minutes. If these and other formalities are not strictly adhered to, the shareholders risk losing the liability protections they sought in the first place. Many businesses hire outside companies or attorneys to manage these formalities. The C-Corporation is financed by its shareholders and/or outside investors, and has the potential to be a publicly traded company. The C-Corporation pays taxes on its profits at the corporate tax rate and owners are taxed on dividends, salaries and bonuses received.