March 23, 2018

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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 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.

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.

PreveCeutical Announces Incorporation of Australian Subsidiary to Support Ongoing Research Programs

VANCOUVER, British Columbia, March 16, 2018 (GLOBE NEWSWIRE) -- via NetworkWire - PreveCeutical Medical Inc. (the "Company" or "PreveCeutical" ) (CSE:PREV) (PRVCF) (18H.F), announces the incorporation of its first Australian wholly-owned ...

Published:  Tue, 20 Mar 2018 05:46:00 GMT

State challenges Buffalo Chip incorporation

STURGIS - The state of South Dakota is challenging the incorporation of the town of Buffalo Chip. This comes after the city of Sturgis and area land owners had exhausted nearly all their legal options. Under state law, the state's first step in the ...

Published:  Fri, 16 Mar 2018 10:39:00 GMT

Hiring A Singapore Incorporation Services Can Help Foreign Entrepreneurs Avoid These Common Mistakes

Amongst all the countries in the Asian region, Singapore is currently the most preferred by foreign entrepreneurs to do business in. With its strategic location, business-friendly environment, state-of-the-art infrastructure, and unparalleled tax system ...

Published:  Thu, 15 Mar 2018 18:41:00 GMT

South Dakota to intervene in case of town's incorporation

STURGIS, S.D. (AP) - South Dakota is challenging the incorporation of a town on the western part of the state. The South Dakota Supreme Court said last week it will allow the state to intervene in the incorporation of Buffalo Chip, which is located ...

Published:  Mon, 19 Mar 2018 14:01:00 GMT

State to intervene in case of Buffalo Chip incorporation

STURGIS, S.D. (AP) - The state of South Dakota is challenging the incorporation of the town of Buffalo Chip. The Black Hills Pioneer reports the state has hired a private attorney to serve as a special assistant attorney general. The state Supreme Court ...

Published:  Mon, 19 Mar 2018 08:37:00 GMT

JR Ball: Disdain and disgust driving the St. George incorporation train

What does the second go-round of the St. George incorporation movement have in common with the disaster known as the Louisiana Special Session Both are rooted in disdain for the respective executive in charge and disgust for anyone who believes "tax and ...

Published:  Mon, 19 Mar 2018 13:38:00 GMT

Editorial: Incorporation-consolidation issue muddied by misinformation

The new mantra of Chatham County's unincorporated islands is quickly becoming a battle cry: No study equals no choice. Like the torch-and-pitchfork mobs of yesteryear, though, few residents fully - or even partially - understand the fight they are ...

Published:  Mon, 12 Mar 2018 01:19:00 GMT

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