TLDR:
A C Corporation (C-Corp) is the standard form of corporation in the US, taxed separately from its owners, offering unlimited investors, multiple share classes, and preferred by venture capital investors.
Why Delaware C-Corp is the Venture Standard
Delaware C-Corps can issue multiple classes of stock with different economic and voting rights, a feature that is essential for venture capital financing. The Delaware Court of Chancery has developed over a century of corporate case law providing clear, predictable rulings on complex equity matters — something that founders and investors value enormously when structuring sophisticated equity arrangements. Furthermore, most US VC term sheets and legal documents are specifically drafted for Delaware C-Corp structures, making legal due diligence faster and cheaper when a company is already incorporated in Delaware.