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What is a C Corporation

Posted by Cory Josephs on Aug 14, 2014 11:43:00 AM

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What is a C Corporation?

A C Corp is legal structure that businesses establish that is a separate entity from the owners and the people that manage it. Corporations are owned by their shareholders, and provide owners limited liability. C Corporations are the most widely type of entity for businesses large and small that have shareholders. 

What's the difference between a C Corp and an S Corp?

All corporations both S and C are started as a C Corp. Once the C corp is formed the business has 75 days to to elect to become an S Corporation.  This election is done with the IRS. More information abour S Corporations can be found Here.

Some things to know if you're thinking about starting a C Corporation

  1. C Corporations may have an unlimited amount of shareholders
  2. Owners do not need to be citizens or residents of the United States
  3. C Corporations shares may be owned by another business
  4. C Corporations are required to have bylaws, hold annual meetings and keep accurate record of the meeting minutes. 
  5. Corporations can raise capital by through the sale of their stock.
If you want to incorporate your company don't worry, American Incorporators Ltd. provides fast and easy incorporation services for you so just give us a call at 800.421.2661 or Click Here for more details.
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Topics: Corporation Creation, Corporations, incorporation, easy incorporation, s corp, s corporation, starting a business, c corp, create a corporation, what is a c corporation, C Corporation

What is an S Corporation

Posted by Cory Josephs on Aug 6, 2014 11:11:00 AM

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What is an S Corporation?

An S Corporation also know as S Corp is a legal entity described by IRS.gov as "a corporation that decides to pass income, loss, deductions, and credits to their shareholders." S corporations avoid the double taxation inherent to general business corporations, in which profits and dividends are both taxed.

How do I turn my business into an S Corp? 

All corporations are started first as C Corporations. After your C Corporation is started your company must elect to become an S Corporation with the IRS by signing IRS form 2553. 

Some things you need to know if you're starting an S Corp are

  1. Limit of Shareholders- S Corporations are limited to 100 shareholders 
  2. Shareholder Definitions- A new law allows "members of a family" to qualify as one, and defines "members of a family" as the common ancestor, the lineal descendants of the common ancestor, and the spouses or former spouses of the lineal descendants or common ancestor  
  3. Stock Restrictions- S Corporations only have one class of stock
  4. IRS filing- To obtain S Corporation status, all shareholders must sign IRS form 2553 which must be filed within 75 days of starting business. 

If you want to incorporate your company don't worry, American Incorporators Ltd. provides fast and easy incorporation for you so just give us a call at 800.421.2661 or check our our website for more details.

Incorporate Your S Corp Now  

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Topics: Corporations, incorporate now, incorporate today, incorporation, easy incorporation, s corp, s corporation, what is an s corporation, fast incorporation, create a corporation, starting an S corp, incorporate your company

Why You Should Incorporate Companies

Posted by Cory Josephs on Jul 11, 2014 3:44:00 PM

There are 5 Different types of entities than can own a business.

  • C Corporation
  • S Corporation 
  • LLCs & LLPs 
  • General Partnerships
  • Sole Proprietorships
For more information on the different types of entities click here 
Incorporating your business into a Corporation or LLC has so many features
  1. Limit the Liability and Protect the Assets of Owners
  2. Increase Tax Savings 
  3. Raise Capital 
  4. Perpetual Existence
  5. Simple Estate and Family Planning
If you own a business as a Sole Proprietorship or General Partnership you have unlimited financial and legal liability. For example if your business gets sued your personal assets are not protected.
 Protecting Personal Assets
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Topics: LLC Creation, Tips & Tricks, Corporation Creation, Limited Liability Companies, Corporations, incorporation process, incorporate now, incorporate today, incorporation, forming a business, easy incorporation, Asset Protection, s corp, business partnerships, s corporation, what is an s corporation, process

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