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Mutual company. A corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company. Mutual Company. A company structure in which the company's owners are also its clients.
A C corporation is a company that sells shares of stock to shareholders who become the owners of the company. A C corporation is considered a distinct taxpaying entity and must pay taxes on its profits. Large companies traded on stock exchanges are C corporations.