Lesson 1 of 13
What is a C corporation?
A corporation is created by filing Articles of Incorporation with a state. Unlike an LLC, it is a separate taxpayer by default.
Defining features
- Owned by shareholders, governed by a board of directors, run by officers
- Pays federal corporate income tax on its own profits
- Can issue multiple classes of stock
- No limit on the number or type of shareholders, including foreign owners
- Perpetual existence, unaffected by owners coming and going
The trade-off
You gain a structure that investors and stock plans fit into naturally. You accept more formality: a board, bylaws, meetings, minutes, share records and a corporate tax return.
C corporation is the default tax status of a corporation. A corporation can elect S corporation treatment separately if it qualifies.
Want us to incorporate for you?
You can incorporate directly with the state using the steps in this course. If you would prefer, Gullia Filing prepares and files the Articles of Incorporation, supplies bylaws and organisational resolutions, obtains your EIN and acts as your registered agent.