A C-Corporation is a powerful tool that can provide tremendous benefits. They provide limited liability to the owners, provide the greatest tax benefits and flexibility in transferring ownership.
A Corporation is owned by its shareholders. Shareholders can be individuals or other entities such as another Corporation, trust or a Limited Liability Company. Although a Corporation usually has more than one owner, it is possible for only one individual to create and own 100 percent of the Corporation.
Corporations must file their own tax return. In most cases, the corporate level of tax is less than the individual rate.
The owners or shareholders of a Corporation cannot be held personally liable for the actions of the business except in the case of outright fraud. If the Corporation is properly established and maintained, the individual shareholders are not personally liable for the losses of the business and creditors may only look to the Corporation and the business assets for payment.
Corporations are legally required to observe corporate formalities. Corporate formalities consist of the holding and documentation of all company meetings, the formal approval of major corporate decisions and the approval of the board of directors and shareholders. Failure to meet these requirements will lead to the disallowance of tax deductions and the asset protection that the Corporation provides. With the Corporate Veil Protection Service you can enjoy all the benefits a Corporation provides, without the hassles and headaches of doing all the paperwork yourself.
A: When you file for a Corporation at the state level in most cases you are forming a C-Corporation. If you are thinking about setting up an S-Corporation, you file for a regular Corporation at the state and then file a document with the IRS to turn the company into an S-Corporation.
A: If you operate a business, even a home-based or part-time business, or if you are thinking of starting a business, then the time to incorporate is now. Incorporating or forming a Limited Liability Company helps separate your personal liability from your business liability while offering additional tax saving benefits.
A: It does not matter if you are going to be the sole shareholder, director, officer or employee.You can form a Corporation. If your Corporation is structured correctly you can take advantage of many of the same benefits as Fortune 500 Companies.
A: You can call 1-800-648-0966, and we can run a quick check to see if the name is available. In some cases, if the name is taken, we can help make a few simple changes that will allow it to be filed.
A: The bottom line is, it is probably easier to outline who should not incorporate than who should. The people who should not incorporate are simply those who do not have a business and are not going into business. They are people who have no assets and have no plan or desire to accumulate assets. Anyone in business, going into business, anyone with valuable assets or working to acquire valuable assets should consider incorporating.
A: If you are starting a business or you’ve been in business for a while then the time to form a company is now. It doesn’t have to be a C-Corporation but it should be some type of entity that will provide liability protection. Running your business as a Sole Proprietorship is risky. As a sole proprietor you are taking on the full burden of debt, liability risk and litigation. Our expert staff is here to help. Please give us a call at 1-800-648-0966 and allow us a few minutes of your time to discuss your business plans. We can assist you in outlining some options in choosing the right entity.
A: The great thing about a C-Corporation is anybody can own shares, including another company or even a trust. Shareholders should be at least 18 years of age.
A: It is not required that you incorporate your business in the state in which it operates. Small businesses just starting out will most likely choose to incorporate in the state in which they transact a majority of their business. Others will choose to take advantage of a preferred state such as Nevada.
In deciding in which state it is best to incorporate in, consider:
Why would you choose Nevada over just simply forming a Corporation in your home state? Nevada is continually ranked the number one state in which to do business and has some of the most aggressive pro-business laws in the country. Nevada incorporated over 50,000 companies last year, and 60% of those have officers and directors who live outside the state of Nevada.
Let's take a closer look at how Nevada encourages economic growth and how you can profit from this environment:
If you want to take advantage of the pro-business state of Nevada but you transact most of your business in another state, you need to qualify your Nevada company to do business in that state. This usually includes paying a small fee, which to most business owners is small potatoes compared to the benefits you get from forming your Corporation in a preferred jurisdiction.
1. Choose the type of entity - Call 1-800-648-0966 for a complimentary consultation.
2. Choose a name - Laughlin will run an initial name search to make sure it’s available.
3. Choose which state - Call 1-800-648-0966 for a complimentary consultation.
It is important to work with a trusted company, one that has been in the business for years and understands the importance of doing it right from the start. The biggest mistake you can make is to form a Corporation with a discount broker who is more interested in collecting a fee than assisting their clients to make the right choice.
At Laughlin Associates, our number one goal is to make you a client for life, which means we have one chance to do it right. Laughlin has been assisting small closely-held corporate owners to reach their financial goals for over 40 years. The amount of time and money you will spend to clean up a company that was not started properly will cost you more in the long run than going to a reputable company in the beginning, like Laughlin Associates.
When you incorporate with Laughlin Associates, our service does not stop there. You will have access to your own highly trained business strategists Monday through Friday, 8:00 a.m.-5:00 p.m. PST, who are available to assist you every step of the way.
We love to talk with business owners who are serious about their businesses and excited to take their business to the next level. Feel free to give us a call at 1-800-648-0966, complete our getting started form, or use our Live Chat feature to get immediate assistance online.
All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service. If legal advice or other expert assistance is required, the services of a professional should be sought.
The following table provides a look at the LLC vs Corporation, and LLC vs S-Corporation. Tax comparisons can be found in the lower portion of the table.
 |
C-CORPORATIONView the Details Incorporate Now |
LLCView the Details Incorporate Now |
S-CORPORATIONView the Details Incorporate Now |
|---|---|---|---|
| Type of Organization |
Stock, there may be different classes. |
Membership interests. There may be different classes of membership. | One class of stock. Which may be voting or non-voting. |
| Eligible Owners | No restrictions. | No restrictions. | 100 shareholder limit. No non-individual and no non-resident alien shareholders. |
| Management | Managed by director(s) and officer(s). | Two Management Types - Managed by Manager - Managed by Members |
Managed by director(s) and officer(s). |
| Allocations of Ownership | None. Dividends must be paid based upon stock ownership. | Permitted if the allocations have substantial economic effect. | None. Income, gain, and loss pass-through to the shareholders based on the percentage of shares owned. |
| Liability Protection | There is limited liability for shareholders, officers and directors. | There is limited liability for members and managers (if applicable) | There is limited liability for shareholders, officers and directors. |
| Duration | Perpetual | Dissolves at the time specified in the Operating Agreement or upon the loss of a member unless other members agree to continue. | Perpetual |
| Transfer of Ownership | Shares freely transferred. | There may be restrictions under certain state laws. | Shares can be transferred only to eligible S-corporation shareholders |
All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service. If legal advice or other expert assistance is required, the services of a professional should be sought.
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