C-Corporation Formation Lawyer San Diego
C-Corporation Formation Lawyer San Diego
C-Corporation Formation Lawyer San Diego
Determining what business entity you should choose for your startup is a big deal! It affects a lot including how your company will function and even how it’s taxed. If you’re considering forming a C-Corporation, it’s important to contact a C-Corporation Formation Lawyer San Diego to ensure that really is the best entity for your business and to make sure you adhere to the legal requirements surrounding incorporation.
What is a C-Corporation?
A C-Corporation is the most common type of corporation and is named for its tax designation under Subchapter “C” of the IRS Code. If you form a C-Corporation, your business will have to pay federal corporate income tax on its profits and losses. Additionally, shareholders, also known as people who hold stock in the company, will have to pay taxes on their personal income, including on dividends from the business. This is the main difference that separates C-Corps from S-Corps.
Since C-Corp profits are taxed both under corporate taxes and under shareholder taxes on their dividends, C-Corporations are considered “double-taxed.” And because those taxes are separated for the company and individuals, the shareholders in C-Corps cannot write off business losses on their personal tax returns. C-Corporations can also be more expensive and time-consuming to start than some other business entities. A C-Corporation Formation Lawyer San Diego can go over all of the disadvantages of starting a C-Corp and how those might affect your specific startup.
What are the Advantages of a C-Corporation?
While there are a few downsides to forming a C-Corporation, there are plenty of upsides! When looking at forming a business, you should also consider liability, investments, if you want to go public someday and offer stocks to average citizens, and more. That’s where a C-Corporation Formation Lawyer San Diego can help! An expert can go over these next few advantages in-depth to ensure you’re making a knowledgeable decision about which entity to choose. Here are some reasons you may want to consider forming a C-Corporation:
- There are no restrictions on the number of shareholders or their identities. This means C-Corps can go public (unlike S-Corps) and even other corporations can be owners (unlike S-Corps)
- The maximum tax rate is lower than it is for S-Corps, sole proprietorships, and partnerships.
- They retain limited liability status, meaning any legal trouble for the business will fall on the business itself and not the shareholders personally.
- It’s easier to raise equity financing and garner investments than it is for S-Corps.
Do I Need a C-Corporation Formation Lawyer San Diego?
You just learned a lot about C-Corporations, so why would you need a lawyer, right? The legal and tax duties of owning a corporation are vast, and it’s important to do things properly from the beginning so that you don’t face legal trouble down the road. A C-Corporation Formation Lawyer San Diego can help you do just that.
With a C-Corporation Formation Lawyer San Diego by your side, you’ll have all the guidance you need to figure out whether the “C-Corporation” designation is right for your new business. There are so many questions that go into choosing the perfect entity for you. It could be rather costly in the long run if you do your own internet research and make a guess rather than obtaining the assistance of an experienced C-Corporation Formation Lawyer San Diego.
Here at Bagla Law, we’ve got years of expertise in helping business owners like you start flourishing companies with the right entity for their growth goals. If you’re interested in finding out which business entity best suits your needs, schedule a consultation with us today.
About Kelly
Kelly is an international award-winning corporate and securities attorney who has been providing expert legal counsel to domestic and international clients for over 17 years. Kelly’s passion is helping entrepreneurs start, run, and grow their businesses with the right legal structure and the right legal contracts.
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