A C-Corporation is a separate legal entity from its owners, who are also known as
shareholders. This provides limited liability protection to the shareholders who
are generally not held responsible for business claims, debts and liabilities.
A C-Corporation is a separate tax entity from its shareholders which provides tax
advantages through Corporate Tax Treatment. C-Corporations may choose to retain
profits within the business; these profits are commonly taxed at a lower rate than
personal income. C-Corporations may also choose to make a payment of “after tax
profits” in the form of dividends to its shareholders, which can often lead to double
Why a C-Corporation is right for my business
You may choose to file a C-Corporation for the following benefits:
- Limited Liability Protection- A C-Corporation limits your personal
liability to no more than the amount of the original investment. Therefore, shareholders
of a C-Corporation cannot be held personally liable for business claims, debts,
or other liabilities.
- Management- Three components makeup a C-Corporation: shareholders,
directors and officers. A C-Corporation is allowed an unlimited number of shareholders.
- Easy Transfer of Ownership- Through the sale of stocks a C-Corporation
can easily transfer its ownership.
- Raise Capital Easily- In a C-Corporation selling shares of stock
makes raising capital easy.
- Tax Savings- A C-Corporation’s business expenses are frequently
tax-deductible. Shareholders are treated as employees of a C-Corporation making
them able to take advantage of “Self-Employment Tax Savings.” A C-Corporation is
commonly audited less than sole proprietorships.
- Perpetual Existence- Corporations have an unlimited life whereas
a C-Corporation does not and must be dissolved in order to no longer exist. The
existence of the shareholders does not affect the existence of the C-Corporation.
Why a C-Corporation may not be right for my business
You may want to look into filing a different entity type for the following reasons:
- Extensive business maintenance- A C-Corporation has the most extensive
record keeping and formality requirements of any other business type. This includes:
issuing shares of stocks, holding and documenting annual and initial meetings.
- Double Taxation- When a shareholder is issued profits in the form
of dividends it can lead to double taxation. This means the C-Corporation is taxed
at the entity level (Corporate level) and again when dividends are issued to the
shareholders (Personal income level).
How It Works
Now that you have decided a C-Corporation best fits your business needs, here is
how it works:
- Select a name and we will check to see if it is available.
- Choose the state where you wish to file your entity.
- Determine whether or not you wish iCorp to acquire your EIN and perform the Registered
- Allocate corporate officers.
These four tasks can all be accomplished by filling out our fast and easy filing
application. The fees associated with each product and service will be listed in
your order summary and throughout the application.
Our online application will track your status as you proceed and will also save
all the information populated page by page.
After the application has been submitted you will receive a confirmation e-mail
with your order status and summary.
If we have questions or concerns, we simply give you a follow up call to clarify.
Again, help is only a phone call away. Give one of our knowledgeable representatives
a call to assist you with your order: 1-866-689-3989