C-Corporations
If you are looking to incorporate your business, one of the most common types of
corporations is a C-corporation. A C-corporation is a state-incorporated business
that is for-profit. This type of corporation offers many advantages to business
owners. Incorporating can be a complex process, therefore the legal assistance of
a C-Corporation lawyer is vital if you wish to incorporate your current business.
A C-Corporation can:
Make business deals
Own property
Sue other businesses independently of the shareholders
With a C-Corporation, tax procedures are different. IRS form 1120 is used to file
separate income taxes while corporate taxes are regularly paid for the business.
The advantage that
results is that a business owner is not personally responsible for any debt that is
incurred by the company. An attorney can help to eliminate the stress and
confusion that may come with
incorporating your business.
Due to a number of regulations, many formalities must be followed when creating a
C-Corporation. Depending on which state you live in, there may be requirements
that include minutes being taken at officer appointments and Board of
Director/shareholder meetings.
Additionally, certain records must receive a certain level of maintenance. Most
states have these types of requirements. In addition, in a C-Corporation,
shareholders and the Board of Directors play a big part because of their ownership
rights.