Corporations
Why a Corporation? Who Needs One?
Choosing the right business structure is crucial for long-term success, and for many entrepreneurs, forming a corporation is the best decision. Corporations offer distinct advantages, such as enhanced credibility, limited liability, and the ability to raise capital through stock issuance. At Filing Express, we help business owners determine if incorporating is the right choice and provide expert assistance with the formation of various types of corporations.
Whether you're looking for limited liability protection, a way to raise capital, or an entity that can scale with your business, Filing Express offers the guidance you need to navigate the complexities of forming a corporation.
C Corporations
A C Corporation (C Corp) is a separate legal entity that offers the strongest protection from personal liability. This structure allows businesses to grow and scale by offering the ability to issue stock and attract investment. C Corporations are ideal for businesses that plan to go public or seek outside investors, as they can issue multiple classes of stock.
Key benefits of forming a C Corporation:
- Limited liability protection for owners and shareholders
- Ability to raise capital by issuing stocks
- Unlimited growth potential through stock issuance
- Tax advantages for reinvesting profits back into the business
- Business can deduct employee benefits, including health insurance and retirement contributions
If you’re looking to grow your business, raise capital, or protect your personal assets while taking advantage of tax benefits, a C Corporation may be the right choice for you.
S Corporations
An S Corporation (S Corp) is a special type of corporation that offers pass-through taxation to its shareholders. This means that the business itself is not taxed at the corporate level. Instead, profits and losses are passed through to the individual tax returns of the shareholders, avoiding double taxation. S Corporations are often chosen by small to mid-sized businesses that want the liability protection of a corporation without the double taxation.
Key benefits of forming an S Corporation:
- Pass-through taxation (profits are taxed on individual returns, not at the corporate level)
- Limited liability protection for shareholders
- Can have up to 100 shareholders (with some restrictions)
- Offers potential tax savings on self-employment taxes
- Provides credibility and professionalism to your business
If you want the benefits of a corporation without the burden of double taxation, an S Corporation offers the perfect balance of protection and tax efficiency.
Professional Corporations
A Professional Corporation (PC) is a special type of corporation designed for licensed professionals, such as doctors, lawyers, accountants, and architects. This structure offers the same legal benefits as a regular corporation but ensures that the members hold the appropriate professional licenses to operate within their respective fields.
At Filing Express, we assist licensed professionals in setting up Professional Corporations, ensuring they meet state-specific requirements and comply with professional regulations. Whether you’re a solo practitioner or a group practice, we’ll help you navigate the complexities of forming a PC and ensure that your business is compliant and properly structured.
Non-Profit Corporations
A Non-Profit Corporation is a unique type of corporation designed to serve a social, charitable, educational, or religious purpose. Non-profits are exempt from paying federal income tax and may qualify for tax-deductible donations. This structure is ideal for organizations that aim to benefit the public good and rely on grants, donations, and volunteer work.
Key benefits of forming a Non-Profit Corporation:
- Tax-exempt status under IRS rules
- Ability to accept tax-deductible donations
- Limited liability protection for board members and officers
- Eligibility for grants and funding opportunities
- Enhanced credibility and trust with the public
If your goal is to serve a social cause while enjoying tax exemptions and additional fundraising opportunities, a Non-Profit Corporation could be the ideal structure for your organization.
