What You Need To Know When Starting A C Corporation

One of the most common types of corporations is a C Corp.

A C Corp creates a separate legal structure that helps shield business owners’ personal assets from judgments against the company.

 

C Corporations have specific structures that include shareholders, directors and officers. There are many advantages to forming a C Corp:

  • A business owner protects his or her personal assets from the business.
  • Your business will be able to exist even if the owner leaves the company.
  • A C Corp has no limit on the number of shareholders.
  • You have unlimited growth potential through the sale of stock.
  • You get to take advantage of certain tax advantages such as tax deductible business expenses.

However, a C Corp’s profits are taxed when they are earned and taxed again when distributed as shareholders’ dividends – also known as “double taxation”. Shareholders in a C Corp cannot deduct corporate losses, which is possible to do with an S Corp.

If you are interested in forming a C Corporation for your business, call The Law Offices of Page, Lobo, Costales and Preston. We have helped many businesses form C Corporations and S Corporations and can help you too!

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How To Avoid A Small Business Lawsuit

Don’t let your business get caught up in a lawsuit.

Page, Lobo, Costales and Preston APC has a lot of experience with assisting businesses in legal matters and would like to share some tips to avoid a lawsuit as a business owner:

small businessBe Safe – Of course accidents can happen but if you take the proper steps to avoid accidents you will be much better off. Keep areas where employees and customers walk safe and free of obstacles which can cause danger

Keep Things Documented – Creating a well drafted contract will help avoid misunderstandings and prevent lawsuits. Keep all emails, invoices, contracts and even telephone messages to resolve future problems.

Understand The Law – Make sure your business is not in violation of any property laws. Make sure no one else owns the trademark on your business name.

Protect Files – Make sure all your computer’s files are backed up. Files can also be lost and/or stolen and that can lead to legal action. Make sure they are protected.

Handbook – It is a good idea to create an employee handbook which contains all sensitive employment issues such as maternity leave, sick leave, compensation, termination, benefits, etc.

Hire A Lawyer – It is smart to have a lawyer hired for your business and to make sure you are in compliance while running your business. Call our offices for all your business needs!