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C-Corporation

  • Double taxation (company and shareholders are taxed)
  • Can go public on the stock market (Most C-corps are publicly traded)
  • Can have several classes of stock
  • File company taxes quarterly (usually) and form 1120/1120a annually (similar to the 1040 form for individuals)
  • Plethora of tax write-offs
  • More paperwork and record keeping (must keep minutes) at board meetings
  • More regulations
  • Usually report finances to state attorney general
  • Managed by board members
  • Owned by shareholders

S-Corporation

  •  Income passed through to owners
  • Personal assets protection
  • File taxes once a year
  • Can have 1-100 shareholder
  • Single person can form an S-corp
  • Can only have one class of stock
  • Technically, limited liability companies cannot be publicly traded. However, there is a way for an LLC to structure itself as a partnership and publicly trade ownership interest on a securities exchange.
  • An LLC can elect to be treated as a corporation by filing form 8832, Entity Classification Election form. Once the entity has been classified as an association taxable as a corporation, you would then need to file form 2553 to request an S-corp tax election.

Limited Liability Company

  • Personal assets protection
  • less paperwork
  • not taxed on business profits
  • taxes paid by business owners on personal taxes
  • file taxes once a year
  • cannot be be publicly traded unless structured as a partnership trade ownership interest
  • does not have to follow corporate formalities

Benefits Of Non-Profit Corporation

  • Non-profits are a business like any other business, and incorporating provide limited liability protections for the directors. Becoming a corporation will also make it possible for the organization to earn profits. It is not always easy finding volunteers that are willing to offer their time for free, and there are payroll expenses associated with non-profits to keep the organization afloat.

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  • Business Creations
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  • Electronic Notarial Services
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