Business Incorporation: C Corp

         One option when it comes to incorporating a business is creating a C Corporation. They are the most type of corporation. It allows for deducting employee benefits and is often very attractive to investors looking to fund a business. There are options that allow for many owners and different types of stock options. This type of business can outlive its owner and offers a tax savings to those who are self-employed, since they are considered employees of the company.

          In order to qualify for this type of incorporation, Articles of Incorporation must be filed stating such a goal. The C Corporation must immediately adopt bylaws, hold a meeting of directors and shareholders, and issue stock. The Statement of Information must be updated annually. This will state the company’s activities over the last year. It will include accounting policies, cash flow statements, and an Auditor’s report. The meetings must be held and documented each year. These formalities are a part of the life of a Corporation. Our next post will look at how an S Corp is different.

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