Starbucks Corporation is a publicly traded company, specifically organized as a C Corporation. This business structure allows Starbucks to issue shares of stock to the public, which are traded on the Nasdaq stock exchange under the ticker symbol ‘SBUX’. Being a C Corporation also means that Starbucks is subject to corporate income tax on its profits before any dividends are distributed to shareholders.
The C Corporation structure provides Starbucks with several advantages, including limited liability for its shareholders, the ability to raise capital by selling stock, and the potential for perpetual existence, meaning the company can continue even if ownership changes. However, it also brings the challenge of double taxation, where the corporation’s profits are taxed at the corporate level, and then any dividends paid to shareholders are taxed again as personal income.