C
               

 

 

CORPORATION

Corporation Formation Only $69.00+State Filing Fees

What is C-Corporation?

A C-corporation is also referred to as a standard corporation.A C-Corporation is a legal form of organization of persons and material resources, chartered by the state, for the purpose of conducting business.

Why should I Incorporate?

Incorporating is one of the best ways a business owner can protect his or her personal assets. Most people choose to incorporate solely for this reason, but there are other advantages as well. For example, the corporate business structure saves you money in taxes, provides greater business flexibility and lets you more easily raise capital.

There are many advantages to incorporating your business. Liability protection of your personal assets is one of the primary reasons why a small business will form a corporation. Incorporating helps to separate your personal assets from that of your business. A corporation is a legal entity that exists separately from its owners or shareholders. Typically, shareholders are not liable for the debts and obligations of the corporation or from any litigation where the corporation is the defendant. In a partnership or sole proprietorship, the creditors can go after the owner's personal assets if the company assets are not enough to settle a claim.

Advantages of Incorporating

  • Reduces Personal Liability:
    Incorporating helps separate an individual's identity from that of his or her business. Insurance may still be necessary, but incorporation contributes an added layer of protection.
  • Tax Savings:
    Careful planning of entity type can result in lower overall tax rates.
  • Reduces Likelihood of an IRS Examination:
    IRS Form 1040 and Schedule C (Profit or Loss from a Business), particularly of higher gross income levels, is the target of many IRS Audits. Incorporated businesses have a much lower audit rate, even if they have high income levels.
  • Anonymity:
    A Corporation can be established in such a way that shareholders/owners remain anonymous. Often this same anonymity can be accomplished for officers and directors.
  • Adds Credibility:
    A corporate structure communicates permanence and credibility. Even a company with only one stockholder and employee may incorporate.
  • Easier Access to Capital Funding:
    With a corporation, investors are easier to attract through the sale of stock.
  • Easier Transfer of Ownership:
    Through the sale of stock, ownership of a corporation may be transferred without substantially disrupting operations. The need for complex legal documentation is also reduced.

Limited Liability for Corporation

The limited liability afforded to an corporation is the same as that of a corporation. It means that the owners of the corporation are not responsible for the debts and obligations of the corporation. There are cases where the owners have been held personally liable.

  • Properly maintain your corporate status.
  • Keep the assets of your business separate from the assets of your corporation.
  • Follow all government regulations and meet all filing deadlines

Income tax treatment for corporation

Corporations have opportunities to take full advantage of the tax law when operating their business. The corporate entity, is both flexible and powerful for the owners of a corporation when dealing with taxable issues. The owners a C corporation are able to determine their salaries, determine how much income tax is payable at the corporate level and how much will be distributed to the employees, and shareholders via dividends and salary. This flexibility in income distribution may create opportunities to decrease the overall tax liability for a coroporation and its owners in a given taxable year.

Ready to incorporate

To Incorporate, proper formation documents, called the articles of incorporation or certificate of incorporation, must be filed with the appropriate state, agency and the necessary state filing fees. We will prepare, complete and file these administrative tasks quickly and effectively, all you need to do is complete our simple order form.

 
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Royal Global Group, LLC Infotax Square have been exceedingly helpful in enabling me to achieve my business potential. This company has been a wonderful resource for all my financial services and tax needs. Every year I'm surprised at how much more I'm able to save because of their sophisticated and latest software and their incredible knowledge of the tax code/laws.   Thank you for your incredible dedication and for saving me a lot of money.

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