Forming a C Corporation
The process of forming a C Corporation begins with the filing of an Articles of Incorporation document, which legally establishes the company’s existence. This document must include the company’s name, address, purpose, registered agent’s information, and business structure information. Once the Articles of Incorporation are filed with the appropriate state, the process is complete.
Benefits and Disadvantages of a C Corporation
Benefits:
- Protection from personal liability
- Flexibility in taxation
- Unrestricted ownership
- Potential for growth
- Increased credibility in the marketplace
Disadvantages:
- Double taxation
- Complicated filing process
- Larger compliance costs
- Restricted financial benefits
Conclusion
C Corporations offer numerous advantages to larger businesses, including liability protection and increased flexibility in taxation. While it is a more complex business structure, and may come with higher costs, it can be the right choice for companies that are looking to grow in the long-term.
