Incorporate business in U.S.
Choosing to Incorporate as a C CorporationThe "C" corporation is considered the "standard" business corporation. It is called a "C" corporation because it is covered by the requirements of Chapter C of the Internal Revenue Service code. In comparison to LLCs, S corporations and other business entities, the C corporation must comply with the greatest number of reporting formalities. That means there can be a lot of paperwork involved.
But there also are significant benefits to forming as a C corp.
What Are the Benefits of Incorporating As a C Corporation?There are numerous benefits that accrue to those who choose the C corp as their business entity. These include:
What Are the Negatives of Becoming a C Corporation?There also are detriments when you choose to form a C corporation:
What Documents Do I Need to Form A Corporation?There are numerous documents and formalities needed to set up a corporation and put it into motion. Some of the documents are:
In What State Should I Incorporate?There are several states in particular that are "corporation friendly." Of these, it is Delaware and Nevada that are at the top of everyone's lists. Delaware boasts half a million corporations that make their home in the state, mostly because of its forward- looking and flexible business formation statutes, and its Court of Chancery, which is a special business court that is very business friendly.
In Nevada, there is no corporate income tax, no taxes on corporate shares, no franchise tax or personal income tax. And, among numerous other benefits, the state doesn't share information with the IRS.
The other states that are considered preferable are Arizona, California, Florida and New York.
Should I Incorporate As a C Corporation On My Own?There are so many formalities and filing requirements involved in forming a C corporation, it is usually wise to seek the help of legal counsel or at least a firm that does incorporations for a living. There are lawyers in all 50 states who specialize in corporate law, and companies whose sole purpose is to help individuals and groups form the business entity of their choosing (S corps, C corps, LLCs, partnerships, sole proprietorships, etc.) and they aren't hard to find.
Want more information about registering a company? Visit our Guide. Check out incorporation fees by each state. Tip: Did you know that Delaware and Nevada are top two incorporation states? Ready to register a company? Choose one of these great online incorporators:
The Company Corporation
My Corporation (Intuit®)
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Information here does not constitute a legal advice. Please contact an attorney or accountant for specific expertise.