Benefits of Forming a C Corporation
1. Choose a business name
2. Select a Board of Directors
3. File Articles of Incorporation with the state
4. Obtain an Employee Identification Number (EIN)
5. Draft Bylaws
6. Hold the first Board of Directors meeting
7. Open a corporate bank account
8. Obtain required business licenses and permits
9. Submit an initial report to the state
10. Issue stock to each shareholder
Compliance Requirements of a Corporation
1. Hold regular meetings of the Board of Directors
2. Hold at least one shareholders meeting each year
3. Record minutes of meetings
4. Do not commingle personal and corporate assets
5 Must comply with state and federal filing requirements
Market and Margin, PC does not provide legal advice.
1. Choose a business name
2. Select a Board of Directors
3. File Articles of Incorporation with the state
4. Obtain an Employee Identification Number (EIN)
5. Draft Bylaws
6. Hold the first Board of Directors meeting
7. Open a corporate bank account
8. Obtain required business licenses and permits
9. Submit an initial report to the state
10. Issue stock to each shareholder
-
Hold regular meetings of the Board of Directors
-
Hold at least one shareholders meeting each year
-
Record minutes of meetings
-
Do not commingle personal and corporate assets
-
Must comply with state and federal filing requirements
Market and Margin, PC does not provide legal advice.
1. Limited Liability Protection for Shareholders - A C Corporation’s shareholders’ personal liability is limited to the amount they have individually invested in the company.
2. C Corporation Taxing Structure - A C Corporation is a tax-paying entity; so when it makes a profit, it will be taxed on that income.
3. Growth Potential - A C Corporation has no restrictions on the number of owners (shareholders) it may have.
Steps for Incorporating as C Corporation
-
Choose a business name
-
Select a board of directors
-
File Articles of Incorporation with the state
-
Obtain an Employee Identification Number (EIN)
-
Draft bylaws
-
Hold the first board of directors meeting
-
Open a corporate bank account
-
Obtain required business licenses and permits
-
Submit an initial report to the state
-
Issue stock to each shareholder
Compliance Requirements of a Corporation
