Incorporation

C-Corporation

A C-Corporation, or C-Corp offers more legal protection for its owners than any other type of business entity. Generally sought after for outside investors, a C-Corp lifts some of the restrictions put on an S-Corp, primarily it may have more than 100 shareholders and Shareholders are not required to be US Citizens or Residents.

A C-Corp’s profits are taxed separately from its owners. C-Corps are owned by shareholders, who must elect a board of directors to make the business decisions and oversee policies. Typically, a C-Corp is required to report its financial operations to the state attorney general.

The major advantage of a C-Corp is that the owners have limited liability. They do not stand personally liable for debts incurred by the corporation and cannot be sued individually for corporate wrongdoings.

Low Risk

As opposed to a sole proprietor or an LLC, corporations are at much lower risk of being audited.

Protection

Owners of a C-Corp have a limited liability towards business debts.

Savings

A C-Corp is able to deduct the cost of benefits such as health plans as expenses.

Unlimited owners

A C-Corp can have an unlimited number of shareholders. This allows the corporation to sell shares to many investors, allowing for more funds to be raised for projects.

Foreign Investors

Foreign nationals have the right to own or invest in C-Corporations.

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