A corporation is a distinct legal entity created under state laws which can open a bank account, purchase property, enter into contracts and operate a business. One of the most important features of a corporation is that generally, its owners are not personally liable for the debts of the corporation.

The corporate business structure also saves you money in taxes, provides greater business flexibility and makes it easier to seek outside investment

C Corporation

• Formal management structure
• Ability to raise capital by issuing stock
• Separate taxable entity – Double Taxation
• Personal liability protection for owners
• Can spread profits between the owners and the corporation to lower the effective tax rate
• Formal meetings and corporate minutes
• Annual state reports
• May have an unlimited number of shareholders

S Corporation

• Formal management structure
• Ability to raise capital by issuing stock
• Pass though entity - Income/loss passed directly to shareholders
• Personal liability protection for owners
• Formal meetings and corporate minutes
• Annual state reports
• Membership restricted to 100 shareholders

For more details, please contact us.