What is a C Corporation?

 
 
What is a C Corporation?
 
 
 

A C Corporation is the most strict of the company types. It's formed when you complete the state paperwork to register your company. Here's what you need to know about c corps:

 

The Pros

You can have any number of owners.

You will receive limited liability. This means your personal assets are not considered company property. You won't have to use personal assets to pay business debts.

It's better for dream deals. They like to see that you're a real company.

It's easy to issue stock options to owners and employees.

It's the best option if you're looking for investors.

 

The Cons

Your taxes are more difficult. You'll be taxed at a different rate and required to fill out different paperwork.

There are formal operating requirements. You'll have to register with your state initially and then fill out annual paperwork and fees. You'll typically need to adopt bylaws, keep corporate minutes, and hold annual meetings as well.

 

Your other entity options

Sole Proprietorship

Partnerships

LLCs

S Corporations

 
 

 

On The Blog