Form a General C Corporation

A General Corporation, sometimes referred to as a “C” Corporation, is the most common form of ownership after LLC’s.  It is a separate legal entity from its owners that offers great flexibility with respect to ownership and the free transferability of ownership interest.  Although a “C” Corporation allows for many advantageous tax deductions and benefits, small business owners may be at a disadvantage due to the double taxation often associated with a “C” Corporation.  Income is first taxed at the corporate level at corporate tax rates. Then, when the corporation issues dividends to its shareholders, the same money may be taxed again at the shareholder level depending on tax laws.  The result is that the same income generated by the corporation may be taxed twice because corporations cannot reduce its taxable income by dividends paid.  Still, the popularity of the “C” Corporation is largely due to its overall recognition and acceptance in our society.

If you do not know the type of company you want to form, click here for important information about types of companies and about federal tax considerations before proceeding.

If you do not know the type of company you want to form, click here for important information about types of companies and about federal tax considerations before proceeding.