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!