C Corporations :
A C corporation is the most common business structure and is formed at the state level. It is a separate legal entity that is owned by a shareholder or shareholders.
Advantages:
- The shareholders are generally not personally liable for the debts and liabilities of the C corporation.
- C Corps can have an unlimited number of shareholders with no limit on stock classes.
- A C Corp can exist beyond the death of the owners.
- A C Corp may issue and sell stock to raise capital.
- C Corps may also issue and sell stock to transfer ownership between investors.
Standard Package: $35 + State filing fees
- Unlimited lifetime customer support.
- Order processed within 24 hours.
- Free Name Availability search.
- Preparation and filing of all formation documents.
- Disbursement of all requisite State fees.
- Electronic delivery of all formation documents the Same Day of filing.
- 100% Satisfaction Guarantee.
Ultimate Package: $299 + State filing fees
- All of the benefits of the Standard Package as well as:
- Certified copy of formation documents.
- Full Corporate Kit.
- Vinyl 3-ring Binder with matching slipcase.
- Hand embossing seal with pouch.
- Customized Stock Certificates.
- Customized Minutes & Bylaws.
- EIN SS-4 Form for easy preparation and filing.
- Expedited State filing fees.
Is a C corporation right for you?
A C corporation is the most common type of corporation, but it isn’t the right choice for everyone. C corporations protect owners, called shareholders, from liability so they are not personally responsible for debts, lawsuits and other liabilities incurred by the company. A C corporation is a legal entity formed at the state level, and offers tax advantages such as deducting employee benefits. A C corporation is a common structure for growing businesses, but it may not be the best choice for small businesses
C Corporations have many advantages:
- Shareholders are generally not personally liable for the debts and liabilities of the C corporation
- Unlimited number of owners, or shareholders.
- Ownership transferable through sales of stock.
- Business continues after death of an owner.
- Salaries paid to owners are tax deductible to the C corporation.
- Owners are not taxed on corporate earnings, unless distributed to them as dividends.
- Owners are not taxed on corporate earnings, unless distributed to them as dividends.
- The corporation pays taxes on its own income at C corporation rates.
- Capital can be raised by selling of stock.
- A C corporation can use its earnings for business needs instead of distributing them.
- A C corporation may be viewed as more legitimate than an LLC or sole proprietorship.
- Less likely to be audited.
- May use business expenses as tax deductions.
- Owners who work for the business are deemed employees for tax purposes.
C Corporations have responsibilities:
- Regularly update bylaws.
- Hold and document annual directors/shareholders meetings.
- Understand and comply with tax requirements.
- Many other responsibilities to remain in legal compliance.
Steps for starting a C Corporation:
- File Certificate of Incorporation with the state and pay filing fees.
- Hold an initial meeting of directors and shareholders and adopt by-laws.
- Issue shares of stock to owners.
