There are many types of corporations you can create, but the two most common in the United States are C corporations and S corporations.
C corporation
C corporations are the traditional model of incorporated business and the structure most major companies use. A C corporation is a legal entity distinct from its shareholders. It can make purchases and take out loans. However, if the corporation runs out of money and has debts to pay, the shareholders aren’t required to use their personal finances to repay the debts. They only stand to lose the money they have invested in the corporation. The corporation pays corporate tax on its profit. It can then either pay dividends to its shareholders from the profits or pay salaries to shareholders who also serve as employees of the corporation. These payments are considered personal income for the shareholders and, therefore, taxable.  C corporations come with double taxation because the profits are taxed at the corporate level and again at the shareholder level.
S corporation
S corporations were invented specifically to address the issue of double taxation, which was a heavy burden on smaller corporations. These corporations are limited to 100 shareholders and have only one class of stock. They’re also “pass-through entities.” Pass-through entities do not pay corporation tax. Instead, profits ‘pass through’ the entity directly to each shareholder to be taxed as part of the shareholder’s income so avoiding double taxation.