C Corporation
The Internal Revenue Service (IRS) refers to general corporations as "C" Corporations. Forming a C Corporation allows a business owner to create a separate legal structure that can shield their personal assets from judgments against the business. Unless a corporation applies for S Corporation status, the IRS taxes corporate profits as well as dividends paid to shareholders. Many tax professionals refer to this scenario as "double taxation."
Start Protecting Your Assets Now
The Company Corporation can help you form your new C Corporation online in any state or the District of Columbia. Incorporate online or contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440 to get started.
How You Can Benefit from a C Corporation
This tried-and-true business structure has many advantages, including:
- Limited liability for directors, officers, shareholders, and employees
- Attract investors through the sale of shares of stock
- Can issue more than one type of stock (example: common and preferred classes)
- No limit to number of shareholders, who need not be U.S. citizens or residents
- Perpetual existence, even if an owner leaves the business
- Can deduct ordinary business expenses as well as benefits to employees
- Can split profit and loss between owners and the business for a possible lower overall tax rate
To compare a C Corporation to other types of companies, click here for our Business Comparison Chart.
Not Ready to Incorporate Yet?
- Try our Business Startup Wizard to learn what others in your state and industry have done.
- Download our Free 10-Step Business Formation Guide.
- Get more details about forming a corporation or LLC in our Small Business Resources, or check out another service.
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