C Corp Formation

C Corp
Limited Liability Company
Limited Liability Partnership
Non-Profit Organization

The C corporation or C corp is the most common corporation type, but it isn’t always the top choice for small business owners. C corporations provide limited liability protection to owners, who are called shareholders, meaning owners are typically not personally responsible for business debts and liabilities. Starting a C corporation may also offer greater tax advantages because of an expanded ability to deduct employee benefits, which are most often used by growing businesses.

 

Advantages of a C Corporation:

 

  • Limited liability protection. Owners are not typically responsible for business debts and liabilities.
     

  • Unlimited owners. C corps can have an unlimited number of shareholders.
     

  • Easy transfer of ownership. Ownership is easily transferable through the sale of stock.
     

  • Unlimited life. When a C corporation’s owner incurs a disabling illness or dies, the corporation does not cease to exist.
     

  • Owners take reasonable salaries. Salaries paid to owners of C Corporations, though taxable to them as salary, are deducted from C Corp profits for income tax purposes.
     

  • Owners are not automatically taxed on business earnings. In contrast to pass-through entities like LLCs, earnings of a C Corporation are not automatically taxed to the owners. They are taxed to owners if distributed as dividends. The C Corp pays tax on its income at C Corp tax rates.
     

  • Raise capital more easily. Additional capital can be raised by selling shares of stock.
     

  • Retained earnings inside the business. A C Corp could successfully retain earnings for reasonable business needs, if it complies with the accumulated earnings tax provisions, instead of distributing them to shareholders.
     

  • Credibility. C Corps may be perceived as a more professional/legitimate entity than a sole proprietorship or general partnership.
     

  • Lower audit risk. Generally C corporations are audited less frequently than sole proprietorships.
     

  • Tax deductible expenses. Business expenses may be tax-deductible.
     

  • Self-employment tax savings. A C corporation can offer self-employment tax savings, since owners who work for the business are classified as employees.
     

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 the necessary state filing fees paid. All formations come with the following:

 

  • Preparation and Filing of all Documents
     

  • Preliminary Name Check with State
     

  • Free Registered Agent Service for 6 months
     

  • Expedited Processing Service
     

  • Corporate Kit & Seal
     

  • Tax Id (EIN) Form Preparation
     

  • Corporate Forms PDF File
     

  • Certified Copy of State Filed Documents
     

  • Overnight Shipping

Level I - C Corp formation fee $850
3 hours of consulting included.

Level II - C Corp formation fee $950
5 hours of consulting included.

The C Corp requires good records to be kept. The C Corp kit maintains and preserves your company records all in one binder. Price includes:

 

  • Quick turnaround.10-14 business days.
     

  • A professional binder enclosed in a matching slip-case
     

  • 20 custom-made, numbered, membership certificates printed with your company name
     

  • A membership transfer ledger, which allows you to keep accurate records of membership
     

  • A custom C Corp seal
     

  • Customized Operating Agreement (not a blank form) for your company. A $400 Value
     

  • Tax ID (EIN) Obtainment. An $80 Value. A representative will call you. SSN required for obtainment.
     

  • FREE Resident Agent Service for 6 months. A $189 Value
     

  • 3 hour FREE consulting is a $450 Value
     

  • 5 hour FREE consulting is a $750 Value

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