Photo: Vitaly Gariev / UnsplashBusiness Formation
Corporation (S corp or C corp)
If you're planning to grow your business, bring in investors, or build long-term credibility, forming a corporation might be the right choice. Here's how S corps and C corps differ, and how Legal Docs USA can help you form one.
Why choose a corporation
This structure offers strong legal protection, enhanced credibility, and the ability to issue shares — making it ideal for startups, large companies, and businesses aiming for long-term growth.
Legal protections & tax structure
Like an LLC, a corporation shields your personal assets from most business liabilities. C Corporations are taxed separately from their owners, which can result in double taxation. S Corporations allow profits to pass through to shareholders and be taxed only once.
Important considerations
Corporations require more formalities and paperwork than other business structures. You'll need to maintain a board of directors, hold annual meetings, record corporate minutes, and stay up to date with filings and fees.
S Corporation vs. C Corporation
Both offer liability protection and a corporate framework, but they differ significantly in taxation, ownership rules, and stock options.
S Corporation
Pass-through taxation; limited to 100 shareholders, who must be U.S. citizens or residents; single class of common stock.
C Corporation
Taxed at both the corporate and shareholder level (double taxation); unlimited shareholders of any type; multiple stock classes available.
Which one should you choose?
Choose an S corp if you want to avoid double taxation, plan to keep your company small, and don't need multiple stock types. Choose a C corp if you're planning for growth, outside investment, or going public.
Start Your Corporation in 3 Easy Steps
Choose Your Corporation Type
We'll help you decide between a C corp and an S corp based on your growth plans and ownership structure.
File & Get Your EIN
We prepare and file your incorporation documents with the state and help you obtain your federal EIN.
Maintain Compliance
We help you stay on top of annual reports, meeting minutes, and ongoing state filings.
Ready to get started?
Answer a few questions about your situation and Mary's team will prepare your documents for review.
Have Questions? Talk to an Attorney.
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