TopConsumerReviews.com
      July 16, 2018

Home  >  Company Incorporation  >  Articles

Best Company

Incorporation

  1. Rocket Lawyer
  2. Corp Net
  3. My Company Works
  4. Legal Zoom
  5. My Corporation
  6. Harbor Compliance
  7. Biz Filings
  8. Incorporate
  9. Corporate Creations
  10. Find Legal Forms

Compare Products

  • Select any 2 companies in our reviews to compare them head-to-head!
  • Compare

Your Information Is Secure
Online Legal Protection For Your Business Newsletter

Latest Reviews

Business Cards

Company Incorporation

Credit Repair Companies

Green Cards

Home Warranties

Meal Delivery

Medical Alert Systems

Pet Insurance

Refrigerators

VPN Services

 

Related Articles

What are the Main Differences between an LLC and an S-Corp?

What Is a C-Corporation?

What Is an LLC?

What Is an S-Corp?

Which Type of Company Incorporation is Right for You?

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

What Is A C-Corporation?

The business owner has a range of choices when it comes to legal structure. An individual, such as a shop owner, contractor or freelancer can create what is called a sole proprietorship. If you go into business with one or more others, you may decide to create a partnership. Should you choose to incorporate, however, you can go one of two ways: You can choose to form an S-corporation or a C-corporation.

So what is a C-corp?
A C-corporation is a structure most common to larger organizations that can also suit smaller ones. C-corp status offers tax and other advantages but also imposes a lot of administrative requirements on the business owner(s). Some states require more of the C-corporation than others. Generally speaking, however, the formulation of by-laws and articles of incorporation, the election of a board of directors, and scheduling and recordkeeping relative to directors' and shareholders' meetings are requirements.

Separate Entity
One thing that distinguishes the C-corporation from the sole proprietorship is that a C-corporation exists separately from its owners. This means that if the company is sued or goes into debt, the assets of the owner(s) will not be vulnerable. Forming a C-corporation can mean the difference between worrying about exposing your personal assets to claims from creditors, or allowing yourself to sleep peacefully at night.

Taxation
To establish that separate identity, a C-corporation is given its own tax identification number by the Internal Revenue Service. On the downside, the profits of a C-corporation are taxed twice: The corporation itself is taxed when its returns are filed. Shareholders who receive dividends are also taxed when they fill out and submit their individual returns. On the upside, C-corporations can deduct the cost of any fringe benefits they provide to employees when the corporate return is filed. This can make offering fringe benefits more affordable. A healthy program of fringe benefits may enable the business to attract more qualified employees.

Stockholder Matters
In addition, a C-corporation can raise capital by selling stock, something a sole proprietorship or partnership cannot do. In some instances, this capability may make it easier to raise financial backing. The administrative structure that accompanies C-corp status can prove to be a negative. Regular shareholder meetings must be held -- once a year at least -- and minutes must be recorded. Each corporation must have its own president, secretary and treasurer. Shareholders must elect a board of directors who are required to meet regularly and vote on major decisions. In some cases, those decisions must also be approved by the shareholders. In other words, a system of checks and balances created with an eye toward accountability must be established.

For business owners accustomed to making decisions regarding the direction of the company on the fly, this structure can seem cumbersome, if not counterproductive. Owners and employees alike may bemoan such changes, looking with nostalgia upon the days when the business was "smaller and more personal."

By-Laws and Articles
A C-corporation must file articles of incorporation with the state secretary of state's office. It must also create and record a set of by-laws. Very often, these administrative requirements require the services of one or more lawyers which can prove costly.

C-corp status offers definite positives, but its administrative requirements can prove deleterious to the entrepreneurial spirit.

Six months after incorporation, Indiantown sees new businesses, ideas, but has lots to do

Six months after incorporation, Indiantown sees new businesses, ideas, but has lots to do There are new businesses and ideas in the village, but there's still lots left to do, residents say. Check out ...

Published:  Thu, 12 Jul 2018 11:50:00 GMT



Edgemont incorporation vote up to state appellate court

Edgemont incorporation vote up to state appellate court A referendum on a bid to make Edgemont a separate village is now in the hands of a state appellate panel Check out this story on lohud.com: http...

Published:  Mon, 09 Jul 2018 03:02:00 GMT



Merger by incorporation of IMI Investimenti S.p.A. into Intesa Sanpaolo S.p.A.

The authorisation released by the European Central Bank for the merger by incorporation of IMI Investimenti S.p.A. into Intesa Sanpaolo S.p.A. (OTCPK:IITOF) was filed on 12 July, 2018 with the Turin C...

Published:  Thu, 12 Jul 2018 11:36:00 GMT



Town submits incorporation application

TOWN OF BELOIT - Incorporation is one step closer, as Town of Beloit officials submitted the application to become the Village of Riverside. Town administrator Ian Haas submitted the application to th...

Published:  Thu, 05 Jul 2018 07:33:00 GMT



Infibeam Incorporation Ltd is up for a third straight session in a row

The stock is quoting at Rs 153.1, up 1.69% on the day as on 12:49 IST on the NSE. Infibeam Incorporation Ltd is up 35.43% in last one year as compared to a 11.62% spurt in NIFTY and a 36.81% spurt in ...

Published:  Tue, 10 Jul 2018 00:46:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure