Incorporate a U.S. C-Corporation
Setup a U.S. C-Corporation - A corporation, sometimes called a 'C-corp', is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the administrative cost of operating a corporation is generally higher than other structures. Corporations have an advantage when it comes to raising capital because they can raise funds through the sale of stock, which can also be a benefit in attracting employees.
The Structure of a C-Corporation
A C-Corporation has Limited Liability - Because a C-Corp is a separate legal entity, the liabilities of the business are separate from the liabilities of the directors, investors and shareholders. Generally, the owners of a C Corporation are protected from being liable for the business’s obligations. This does not apply in all cases, for example if corporate funds are misused, there is willful fraud, or if certain rules and regulations are not followed.
A C-Corporation Exists Independently of its Owners - A C-Corporation can have “Perpetual Existence” — this is in contrast to sole proprietorships or partnerships where a business only exists for as long as the proprietors or owners are alive and in the business.
Ownership of C-Corporations Can Be Fluid and Transferred - Ownership in a C-Corporation is decided by who holds the stocks it issues. These stocks can be bought and sold between investors, and if the company’s shares are publicly traded on a stock exchange, institutions and members of the public can own stock in the company.
Ease of Access to Funding Through Issuing Stock - If a C Corporation want to raise money, it can hold an “Initial Public Offering (IPO)” where it “goes public” and offers shares for sale on a stock exchange. This can bring significant money into a business. They can also choose to issue shares periodically to raise further funding, although this can dilute the value of existing shares.
Enhanced Business or Corporate Credibility - Most of the businesses that are household names are C Corporations. Incorporating as a C Corp demonstrates to others that you expect to see significant growth and can enhance the business’s credibility and authority.
We provide fixed business address services in any of the 50 states, often with multiple options to choose from. Our virtual address service offers a permanent business street address for registering your company.
Setup a C-Corp
Setup a US C-Corporation - C-Corporations can be a good choice for medium or higher-risk businesses, businesses that need to raise money, and businesses that plan to "go public" or eventually be sold.
Once we have your company formation complete and have your articles back from the state, alongside your EIN tax ID IRS letter, we can put you in touch with our banking partners to get your account setup.
There are two main types of corporations – the S-Corporation and the C-Corporation. Every corporation is considered a C corp when it is formed with the Secretary of State. The distinction is made on a federal level and processed by the IRS.
A corporation that wants to be taxed as a small business corporation will file a form with the IRS called Form 2553 and file their taxes using 1120s tax return. Corporations that do not file this form are taxed as traditional corporations and file the 1120 tax return.
A C-corporation files a corporate tax return and pays taxes on the profits. The post tax income may then be distributed to the corporation shareholders in the the form of dividends. The shareholders are then taxed on dividends, which effectively forces the ownership of a corporation to pay taxes on the same earnings twice- once at the corporate level, and then at an individual level. This is known as “double taxation.”
An S-Corporation is similar to a Limited Liability Company in the sense that the profits of the company flow directly to the shareholders. This is known as pass through taxation. The profits of the S – Corporation are distributed proportionally to share percentages.
Tax Advantages of a C-Corporation:
The corporate tax rates are typically lower than personal income tax rates. Because corporate tax rates are lower, companies that have retained earnings can take advantage of the lower rates.
Limited Liability Companies (LLC)
An LLC like the S – Corporation provides for pass through taxation. An LLC is considered a disregarded entity and its tax treatment depends on the number of members. A single member LLC is taxed as sole proprietorship while an LLC with more than one member is taxed as a partnership. A very unique advantage of the LLC is that it can elect to be taxed as S-Corporations or even a C – Corporation if it chooses.
Tax Advantages of the LLC:
Multiple options in terms of taxation. Extremely flexible in how it chooses to distribute profits which allows the owners to distribute profits or losses in ways that are advantageous to their tax situation.
In certain instances where required, we will use an online notarization service to validate your identity as the company founder or representative in association with your registered business address. To complete this simple process we use an online notarization platform provided by our partner, Notarize, the online notary public.
US Business Address
To open a company in the United States, you are required to have a US business address in the state of incorporation. Once step 1 has been completed, we will obtain a registered business address for you in the state of your company formation. This address serves as a business address and registered mail forwarding address.
Filing Documents with State
For step 3 in your company formation, the filling of incorporation documents with the state or federal government is required. As part of our U.S company formation services we will file these documents on your behalf. This is part of our incorporation service.
U.S Business Bank Account
Foreigners (non-U.S. residents) can open a U.S. business bank account for their company. You don’t have to be an American or a U.S. resident to open a business bank account in the U.S. There are 2 main options for foreigners who need to open an account, in person or via an international branch.
Registered Agent Services
If you’re forming a corporation or a limited liability company, you’ll need to select a registered agent for your business and provide the agent’s name and address on the formation documents you file with the state. We can provide this service on your behalf. We offer registered agent services in 50 states.
Bylaws and Resolutions
Bylaws and resolutions are the initial decisions of your corporation’s board of directors and basic "operating rules" of your corporation. As part of our U.S company formation services we will provide initial drafts of these on your behalf. This is part of our incorporation service.
Obtaining an EIN Tax ID
An EIN Tax ID is required by the IRS and U.S Banks to track your business associated income and operate your business legally. As part of our U.S business formation services we will obtain an EIN on your behalf. This is part of our incorporation service.
International Docs Delivery
As part of our service for international clients, where you select the option for a corporate kit, we will deliver your business incorporation documents, EIN tax ID forms and any additional selected supplements to you anywhere in the world as part of our service offering.
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