C Corporation

A C Corporation (or simply a Corporation) is considered by law to be a unique entity separate from those that own it. As an individual entity, a corporation can be taxed, sued, and can enter into contractual agreements. Corporations are owned by shareholders of the corporation, which elect a board of directors to oversee the major business decisions and policies. When ownership changes in a corporation, the corporation does not dissolve.

What are the main advantages of forming a C Corporation?

       Corporations are said to have less risk from government audits as a corporation (as opposed to sole proprietor or LLC).

       Owners of Corporations have limited personal liability for business debts.

       Corporations can deduct the cost of benefits as a business expense.

       Corporations can split corporate profit among owners and the corporation, paying a lower overall tax rate.

       With a Corporation, there is no limit on the number of stockholders.

       Corporations can raise additional funds through the sale of stock.

       You do not need to be a US Citizen to own or invest in a C Corporation.

       You can elect S Corporation status if certain requirements are met, enabling the company to be taxed similarly to a partnership.