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Documents filed with the state forming your corporation

Personalized bylaws and resolutions defining who owns and manages the company

Company Formation

What is C corporation?

Any corporation that is taxed separately from its owner is called C corporation under United States Federal Income Tax Law. Even C corporation or C corp is the most common corporation type but still it is not always the top choice for small business owner. Limited Liability protection is provided by C corporations to the owners. Owners are called shareholders in C corporation. Owners are typically not personally responsible for business debts and liabilities. There are many perks in starting a C corporation and one of them is greater tax advantage as it offers an expanded ability to deduct employee benefits, which are most often used by growing business. All for-profit corporations are automatically classified as a C corporation.

Advantages of C corporation Disadvantages of C corporation
Under Limited liability protection, Owners are not typically responsible for business debts and liabilities. “Double-taxation” is the biggest negative aspect of C corporation. Whenever C corporation earns money, it has to pay tax. Everytime corporation issues a dividend then the shareholders are taxed on the amount they receive which results in the income “twice taxed”
The advantage of having unlimited owners or shareholders is also available under C corporation. To form a C corporation one has to go through complicated formalities like drafting articles of incorporation and bylaws which asks for details like corporation’s name, address, business purpose, and the name of its registered agent and how many shares of stock will issue.
If any owner of C corporation incurs a disabling illness or dies, the corporation does not cease to exist. C corporation is expensive to maintain. If we consider all the costs associated with preparation of the corporate tax return, compliance with corporate formalities, and the double taxation of corporate profits then a C corporation can be quite expensive to its shareholders.
Since owners who work for the business are classified as employees, C corporation offers self-employment tax savings.
Less frequently audited than sole proprietorships.
In comparison to sole proprietorship or general partnership, C corporation may be perceived as a more professional/legitimate entity.
By selling share of the stock additional capital can be raised.

How to apply for C Corporation

1. Apply

Complete our Simple Form

2. Questionnaire

Answer our few easy questions in
little time

3. Documents

Your documents will be assembled by us in little time and file them directly to the secretary of state.

4. Complete

In no time, you will receive your Limited Liability company package by mail.

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  • Foundation, EIN, bank accounts, legal documents. We supervise everything. You do your job.
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Frequently Asked Questions

1. How C corporations are taxed?
2. Can AC corporation own another C corporation?
3. What does C in C corporation stand for?
4. Is C corp better than LLC?
5. Can a C corporation be a member of LLC?
6. Can an S corporation be owned by S corporation?
7. How is stock distribution handled by a C corporation?