What's a C-Corp - and when do you need it?
A C-Corporation (C-Corp) is a corporation designed for startups + growing companies that gives the protection of a corporation but allows international shareholders + multiple classes of stock.
It is a corporation seeking investors or aiming for an IPO. It’s formed at the state level but falls under Subchapter C of the Internal Revenue Code.
It limits your liability by keeping your personal and business finances separate so people can’t reach too deep into your pockets if they sue you.
A C-Corp may be right for you if…
- You want to form a company with multiple investors, venture capital, or an IPO.
- You want various classes of stock and voting rights for shareholders.
- You’re comfortable with greater complexity in tax and business filings.
- You’re consistently making over $100,000 in gross income.
- You want to limit your liability + protect your assets.
- You want to raise your credibility by having an actual corporation.
- You recognize that there is “double taxation” on income unlike with an LLC or S-Corp.
Legal Love™ Tip: Third eye chakra nudging you? It’s a sign it’s time to level up with a C-Corp.
Note: If you’re a licensed medical practitioner, reach out to us before forming any corporate entity. A C-Corp may not be legally appropriate for you.
Why do you need it?
Every day that you DON’T have an S-Corp, you’re exposing your personal finances + business income to risk.
The best reasons to form a C-Corp are…
- Unlimited growth potential by allowing for international investors, venture capital, IPOs + multiple classes of stock.
- Asset protection + reduction of risk.
- Attractiveness to employees since you can offer (and deduct) more business expenses, like employee benefits (health, dental, and vision insurance).
Want company investors + infinite scalability? C-Corps are your best choice.
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What’s included?
- Your C-Corp Formation + Filing Package includes:
- C-Corp Formation + Filing – to compile + file the required paperwork to create your C=Corp.
- C-Corp Formation Prep Sheet – to get you clear about your desired C-Corp name, corporate policies + more.
- 30-Minute Prep Call – to share info about you + your business for the C-Corp filing in a 1-on-1 phone call with Lisa’s team member.
- C-Corp Articles of Incorporation – to have an official record of your C-Corp formation.
- Federal Tax ID Number – to have for opening your biz bank account, hiring employees + other business ventures.
- C-Corp Corporate Bylaws – to have your C-Corp governing document (most attorneys charge separately for this document!)
- 60-Minute Walk-Through Call – to walk through your C-Corp formation with Lisa after it’s granted, explain your corporate documents, answer your questions + discuss next steps.
- And more!
How does it work?
- Receive an email from us with instructions.
- Complete the Prep Sheet.
- Schedule your Prep Call.
- Once it’s been filed, it can take 3 days to 3 weeks depending on your state to complete C-Corp formation so it’s good to plan ahead.
- Receive your C-Corp documents by email.
- Schedule your Walk-Through Call to review the documents + ask any questions.
Can I do it myself?
If you’ve had an C-Corp before, you can probably do it yourself. If not, dealing with government filings can be tricky.
Here are common mistakes when doing it on your own:
- Choosing the wrong business entity, like a C-Corp when you really need an PC or S-Corp or vice versa. (I see this all the time.)
- Not filling out ALL of the required state and federal forms.
- Not knowing which documents to file at the federal, state and local levels.
- Not knowing how or when to renew your C-Corp + the paperwork and fees required.
You don’t know what you don’t know.
Don’t take that risk.
What's the investment?
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