What is a C Corporation?
A C Corporation is the classic, original form of corporation. Some of the benefits of the C Corporation are:
- Unlimited Shareholders
- Typically No Shareholder liability
- Professional Image
- Deduct your business expenses
- Unlimited Life Span - Death of Shareholders does not require dissolution.
A C Corporation does have some disadvantages:
- Double Taxation - You get taxed on both the corporate and personal level.
- Formal record keeping - you must keep minutes, appoint a board of directors, etc.
Who should use a C Corporation?
A C Corporation is particularly well suited for the following:
- Companies that wish to raise money via equity
- Long Term businesses
- No Personal Liability
- Professional Appearance
- Easy to Obtain Business Credit
- Better tax options