What's the difference between a "C" corporation and a "S" corporation?
An "S" Corporation provides the benefits of incorporation,
while eliminating "double taxation." Rather
than being
taxed at the corporate level, profits and losses are included in
your personal tax return.
These extra tax advantages are not available
to shareholders in a regular "C" corporation. You may
be
subject to double taxation. The corporation is considered a separate
entity from its shareholders and
is taxed on its profits. When these
profits are distributed to the shareholders as dividends, the
dividends are taxed again on the personal level.
What is a Registered Agent and do I need one?
A Registered Agent
accepts and forwards any official legal and
tax correspondence. A Registered
Agent is required.
Does
the name I choose have to end with "Inc."?
The corporate name you choose must include a suffix.
The word "corporation", "incorporated",
or "limited" either in full or abbreviated must be the
ending of the name.
What are the advantages of a C Corporation?
- Limited Personal Liability
- Perpetual Existence
- Tax rate on corporate income is lower than
the tax rate on personal income.
How is a C Corporation Managed?
By its directors
and officers.
How many shares of stock will my corporation need?
Standard filing is
200 No Par Value.
When will I know if the name I have chosen
has been accepted?
Within 24
hours of receiving your application.
S-Corporations
What is a Registered Agent and do I need one?
A Registered Agent
accepts and forwards any official legal and tax correspondence. A Registered
Agent is required.
What is Form 2553?
This form is to be
filed with the IRS to get S-Corporation status. It is included
in your corporate kit.
What are the advantages of an S Corporation?
- Limited Personal Liability
- Perpetual Existence
- Tax rate on corporate income is lower than
the tax rate on personal income.
-
Pass-through Taxation
How is an S Corporation managed?
By its directors and
officers.
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