What is a C-Corporation?
A "C Corporation" (or simply a Corporation) is considered by law to be a unique entity separate from those that own it. As an individual entity, a corporation can be taxed, sued, and can enter into contractual agreements.
Corporations are owned by shareholders of the corporation, which elect a board of directors to oversee the major business decisions and policies. When ownership changes in a corporation, the corporation does not dissolve.
What are the main advantages of forming a C Corporation?
Corporations are said to have less risk from government audits as a corporation (as opposed to sole proprietor or LLC)
Owners of Corporations have limited personal liability for business debts
Corporations can deduct the cost of benefits as a business expense
Corporations can split corporate profit among owners and the corporation, paying a lower overall tax rate
With a Corporation, there is no limit on the number of stockholders
Corporations can raise additional funds through the sale of stock
You do not need to be a US Citizen to own or invest in a C Corporation
You can elect S Corporation status if certain requirements are met, enabling the company to be taxed similarly to a partnership.
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