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The standard corporation, also called a C Corporation, is
the most common corporate structure available. C Corporations
provide limited liability protection and generally offer more tax
advantages from contributions to retirement plans than LLCs.
To create a C Corporation, the proper formation documents - typically called the articles of incorporation or certificate of incorporation - must be filed with the appropriate state agency and all of the necessary state filing fees must be paid.
C Corporations can be either privately held or public, depending on the decisions of the shareholders and Board of Directors. There is no limit to the number of shareholders, and the shares may be held by citizens of any jurisdiction. Corporations also have the option of carrying forward a loss to future tax years if they so choose, however this only benefits the corporation, not the individual shareholders. In some cases, shareholders may be subject to ‘double taxation’ as corporate income and personal income can both be taxed. C Corporations prepare their own annual tax returns as any individual would, and often times have lower tax rates than individuals.
With 25 years of “all business” incorporation, we can help choose your best option. Send your questions and comments to us by email at info@incbert.com or contact us by phone - Toll-free in USA and Canada: 800-841-3958 (Se Habla Español).
Ready to Incorporate? Click here to go directly to our Incorporation Package Options.
| Advantages
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DISAdvantages
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Limited Liability Protection: Responsible for
total amount invested in corporation |
Extensive Record Keeping Requirements |
| Perpetual Existence: Ownership can be transferred by sale of stock |
Double Taxation: Income can be doubly taxed at both Corporate and Personal Levels |
| Advantageous Corporate Tax Treatment |
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C AND S CORPORATION COMPARISON CHART
C Corporation
Limited Liability Protection
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S Corporation
Limited Liability Protection |
| Perpetual Lifetime |
Perpetual Lifetime |
| No citizenship or residency requirements |
US citizens and resident aliens are required to be owners |
Separate Tax Entity from shareholders: Must pay and file annual income taxes
with IRS |
May not exceed 100 shares or have more than one class of stock |
| Double Taxation: Corporation and Shareholders pay income taxes |
Pass-Through Taxation: Corporation does not pay income tax, while shareholders are taxed based on corporate income/losses |
Send your questions and comments to us by email at info@incbert.com or contact us by phone - Toll-free in USA and Canada: 800-841-3958 (Se Habla Español)
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