Start Your C-CORPORATION

Start-Your-corporation Start Your C-CORPORATION start a c-corporation

C-corporation is the most common type of company in the United States – and rightly so. Start your C-a corporation (C-corp) and gain the most potential to grow. In other words, This is through the sale of shares you can raise money. Which means you can attract wealthy investors. Besides, there is no limit to the number of shareholders in the C corp. Further, lots of big companies in the US are C, corp. So, if you need help filing your corporate tax preparation contact us so we can help.

At first, you want to register your corporation at the state level. Therefore, after filing the articles of incorporation with the Secretary of State you will be officially a corporation. Finally, remember policies and costs can vary from state to state.

Advantages of C Corporation

There are many advantages to C-corp. Here are some of those that stand out.

  • Limited Liability: This applies to directors, shareholders, and employees.
  • Durability: Even if the CEO leaves the company or dies, the business continues.
  • Credibility: Suppliers and creditors respect the company.
  • Unlimited potential: The sky is limitless through the sale of shares.
  • Limitless shareholders: There are no restrictions on the number of shareholders. However, once the company has $10 million of assets and 500 shareholders, it must register with the SEC following the 1934 Law on Securities Exchange.
  • Tax benefits: Enjoy tax-deductible expenses, So why wait? Start your C-Corporation today.

What’s the downside of a C-corporation?

Having unlimited growth comes with its challenges. Let’s take a look at some of them.
Double taxation. Firstly, you pay taxes on the income of the corporation. Second, you pay income taxes on an individual level.
Expensive to incorporate: Many expenses come with submitting articles of incorporation. Also, companies pay fees to the state in which they operate.
Regulations and formalities: C-corp experiences more government control. Also, because of complex tax regulations, you pay more in taxes. Lastly, the protection is given by the owners to be responsible for the corporation’s debts, and other obligations.
No deduction of business losses: Unlike in S-corp, shareholders can not deduct losses on their tax preparation.

C-Corporation vs. S-Corporation

Both corporations C and S give limited liability protection. You must file the articles of incorporation and submit to the Secretary of the State. Additionally, it must have shareholders, directors, and officers. There are many similarities, but they differ in the complex areas of taxation and ownership.
C-corp is subject to double taxation, while S-corp has pass-through tax structures. This prevents owners from being taxed at both the corporate level and shareholders’ individual income taxes.
As for business ownership, C-corp has no restrictions on ownership. It can have as many owners as it likes. However, S-corp does not enjoy this luxury, because they are limited to a maximum of 100 shareholders.

Preparing to incorporate in Texas

To start your C-corporation in Texas, you must file a certificate of formation with the Secretary of State and pay the filing fee. The existence of the corporation begins as soon as the Texas secretary of state receives your filing unless a different date is specified on your certificate. Certificate of formation must include these provisions:

  1. Company name.
  2. The names and addresses of the organizers.
  3. The names and addresses of the administrators.
  4. The registered agent and registered office.
  5. Corporate purpose.
  6. Shares structure.
  7. The duration of the company, if not permanent.
As for the shares structure, your certificate of formation must contain the following information:

You must specify the total number of shares that the company initially was authorized to issue. Also, indicate the nominal value of shares or that shares has no nominal value. Shares with value cannot be sold for less than the stated value. The shares with no value can be sold for any amount decided by the directors. This process can get complicated that’s why we strongly suggest starting your C-Corporation by contacting us first for one on one consultation. We are the best in Houston tax preparation and business formation.

GET YOUR C-CORPARATION TODAY

$300

Processing Fee + State Fee

713-384-9432

Call Now Button