Incorporate Your Business
A Corporation is a formal business structure with shareholders, a board of directors, and officers. Ideal for businesses seeking investment or planning to issue stock. Choose between C-Corp and S-Corp.
C-Corp vs S-Corp
C-Corporation
The standard corporation type. Subject to corporate income tax.
- -No limit on shareholders
- -Foreign shareholders allowed
- -Subject to corporate tax (potential double taxation)
- -Can issue multiple classes of stock
- -Preferred structure for VC/investment
S-Corporation
Special tax status with pass-through taxation. Requires election filing with the IRS.
- -Limited to 100 shareholders
- -Only U.S. citizens/residents as shareholders
- -Avoids double taxation (pass-through)
- -Single class of stock only
- -Potential self-employment tax savings
When to Choose a Corporation
Seeking Investment
C-Corps are the preferred structure for VC and angel investment.
Issuing Stock
Issue employee stock options and multiple classes of stock.
Formal Structure
Formal governance with board of directors, bylaws, and shareholder meetings.
IPO Plans
A Corporation is required if you plan to go public in the future.
Corporation Formation Consultation
Not sure whether you need an LLC or Corporation? Get a free consultation.