Incorporation 101: What Is C-Corporation?

What Is a Corporation?

Corporation is a legal form of organization of persons and material resources, chartered by the state, for the purpose of conducting business. Corporation is owned by shareholders, the Board of Directors governs the business, and elected officers manage the day-to-day activities. Corporation must adhere to corporate tax laws and file corporate taxes regularly.

A Corporation, also referred to as Standard Corporation, C-Corporation, or Regular Corporation, may have an unlimited number of shareholders, including foreign citizens, may be public (when shares are offered for sale to the public) or privately held (when shares are not sold to the public). Usually shares of the corporation are held by the founders, board members and private investors, such as venture capitalists, who may or may not sit on the board of directors.

C-Corporation is the most common type of incorporation. C-Corporation is considered to be a for-profit, state-incorporated business. Registration is done with state authorities and must abide by corporate laws in the state where it is incorporated.

Corporation provides protection to its shareholders from the corporation’s liabilities, thus the term “limited liability”. However, C-Corporations also have what is called “double taxation” – first the corporation is taxed on its profits, and then shareholders are taxed on the distributions they receive, such as profit sharing payments or dividends.
To incorporate you will need to register your business name, file a certificate of incorporation or articles of incorporation, and pay a fee. You will also need to draft corporate bylaws and hold a board of director’s meeting.

Why Should I Incorporate?

Incorporating is one of the best ways to protect your personal assets while doing business. Most people choose to incorporate solely for this reason, but its not the only advantage of incorporation.

For example, owning a corporation can save you tax money, allows for a greater business flexibility, reduces your chances to be audited, provides tools for better itemization, and makes raising capital less complicated.

Advantages of Incorporating

  • Limited Liability: A corporation is a legal entity that exists separately from its owners or shareholders. With some exceptions, shareholders are not liable for the debts and obligations of the corporation or from any litigation where the corporation is the defendant. Some form of insurance may still be necessary, but incorporation contributes an added layer of protection (also called “corporate veil”).
  • Tax Savings: Careful planning of your business expenses can result in lower overall tax rates. There are many tax benefits for doing business under incorporation, depending on your business income. Even if your young business becomes quite profitable soon, a corporation is entitled to many deductions otherwise not available to you, resulting in significant tax savings. An example of such tax-deductible expense would be salaries of your employees and yourself.
  • Reduces Likelihood of IRS Examination (Audit): Non-incorporated businesses, particularly of higher gross income levels, are targets of many IRS Audits. Incorporated businesses have a much lower audit rate, even if they have high income levels.
  • Anonymity: Depending on the state where you choose to incorporate in, a corporation can be established in such a way that shareholders/owners remain anonymous. Often same level of anonymity can be provided for officers and directors.
  • Added Credibility: A corporate structure communicates permanence and credibility. Even if its a company with only one stockholder and employee.
  • Easier Access to Capital Funding: With a corporation it is much easier to attract investors through the sale of stock.
  • Easier Transfer of Ownership: Ownership of a corporation may be transferred without substantial disruption of operations through the sale of stock. This way the need for complex legal documentation is reduced.
  • Flexibility of Share Ownership: Owning shares gives you the flexibility needed, among other things, to effectively capitalize your business, or to retain key employees. To further capitalize the business successful C-Corporation can be taken public in a process called Initial Public Offering (IPO). You can also issue stock or stock options to your key employees, “binding” them to the business and thus retaining them (common in hi-tech industry among others).
  • Longevity: The board carries on the corporation, not the owner. That means that a corporation formation can last longer than an owner-based company such as an LLC.

Main Disadvantages of C-Corp.

C-Corporations have certain disadvantages. The main disadvantage is the fact that the profit of a C-Corporation is taxed to the corporation when earned, and the corporation does not get a tax deduction when it distributes dividends to shareholders. Then when dividends are distributed to the shareholders they are taxed again at the shareholder level. This phenomenon is called “double taxation”.

Similarly, when C-Corporation has a loss, its shareholders cannot deduct it from their personal income.

C-Corp. vs. S-Corp. vs. LLC

Other forms of incorporation of business organization include S-Corporation and LLC. Each of those types of entities have certain advantages and disadvantages when compared to the common C-Corporation, but a more detailed comparison between those entities goes beyond the scope of this article.

Alex Zehnbacht is an entrepreneur with over 8 years of experience in start-ups and business consulting and one of the founders of MyUSACorporation.com, an online business dedicated to help entrepreneurs with all their business filing needs. He has helped thousands of clients to incorporate their businesses, form LLC, obtain various business licenses, and much more.

Forming a California Foreign Corporation

When do I charge a California adopted corporation?

If you’re a baby business buyer about abreast the West bank and business is booming, you adeptness adjudge to aggrandize your business to yield advantage of added markets, possibly beyond accompaniment lines, and California is a abundant abode to abound and aggrandize a baby business. But afore you assurance the charter to your new accumulated offices and bandy advanced your doors, buck in apperception the filing affirmation that is the aberration amid a blessed and acknowledged accord with the accompaniment and a abrupt amends for declining to accede as a acceptable to the neighborhood: registering your California Adopted Corporation.

A California Adopted Association is a appropriate filing of any association that has been registered in addition accompaniment (its calm state) and is advised by the accompaniment to be accomplishing business in California. While the accompaniment will not action to adapt the law on your behalf, and while acknowledged admonition is consistently best approved from your advocate or acknowledged advisor, a loose, accepted aphorism of deride is that if you run an online abundance and anyone active in California purchases an item, you are not advised to be accomplishing business in the accompaniment — but if you accessible a accumulated appointment in California and abode the awash appurtenances from there, you acceptable would be appropriate to book a California Adopted Corporation.

What will I charge in adjustment to accept my California Adopted Corporation?

There are a amount of abstracts you accept to abide in adjustment to annals and conduct business as a adopted association in California.

Statement and Designation by Adopted Corporation

When you’re accessible to annals your adopted association in California, you will abstract a certificate agnate to the Articles of Incorporation you acclimated to alpha your business in your calm state, alleged the Statement and Designation by Adopted Association form. This anatomy will ask for advice about both your absolute business and your new business.

The Adopted Association anatomy will cover advice on the following:

The acknowledged name of your corporation, as it is laid out in the a lot of contempo adaptation of your Articles of Incorporation in your calm state

The administration beneath which your association was initially formed; your calm state

Your assumption controlling appointment address, acceptable amid aural your calm state

The abode you intend to you use in California, if applicative (it is altogether accessible to be accurately advised accomplishing business in California after captivation an appointment in the state)

Your agent, or registered agent, who is to be the acquaintance getting for the California adopted association and is to accept a concrete home abode in the state

Signature and affirmation of a accumulated officer

Relative to abounding added states, the California Adopted Association accumulation certificate is actual simple — the printed anatomy takes up alone two pages.

Certificate of Acceptable Standing

Sometimes aswell alleged a Certificate of Existence or Certificate of Fact, the Certificate of Acceptable Continuing is a certificate from your calm accompaniment assuming that you not alone abide but that your association has a cachet aural the accompaniment of Active, and that it is in acceptable continuing in the calm state. If your Certificate of Acceptable Continuing shows that you are in Default, you will not be accustomed to annals your California Adopted Association until you accept adapted whatever affair was befitting you from getting in acceptable standing.

This affirmation is not specific to California — a lot of states crave a Certificate of Acceptable Continuing or agnate document. Not all states accept this requirement; in Texas, for example, you are appropriate to affirm that your association is in acceptable continuing in its calm state, but no academic affidavit to abutment this affirmation is required. (Although if you lie, the Texas Secretary of Accompaniment will be beneath than admiring and your adeptness to accurately conduct business aural the accompaniment will be revoked.) Added states, such as Virginia, require, rather than the Certificate of Acceptable Standing, the aboriginal Articles of Incorporation and any consecutive filed amendments, certified by the Secretary of State.

Filing fee

The allotment fee for a California Adopted Association is currently $100. There are aswell expedited filing options, advice on which can be begin on the Secretary of State’s fee schedule.

Statement of Information

While not appropriate to be submitted forth with the Adopted Association allotment documents, a Statement of Advice for Adopted Association anatomy is appropriate of all adopted entities aural the ages that they book (or the anon above-mentioned 5 agenda months), so abounding accept to complete and abide the certificate forth with the California Adopted Association paperwork. The filing accept to be again annually to that the Secretary of State’s appointment is acquainted at all times of adapted advice on your business.

The Statement of Advice contains advice about the business not included on the Statement and Designation by Adopted Corporation, including:

CEO’s name and address

Secretary’s name and address

CFO’s name and address

Blazon of business of the corporation

Other advice that duplicates advice on the Statement of Advice can aswell be provided on the form, if there are any changes to be made.

Where do I annals my California Adopted Corporation?

There are a amount of means to go about ambience up your adopted corporation, depending on the amount of abetment you would like in advancing the paperwork. (While you are absolutely able to abstract and abide these abstracts on your own, it’s usually best to run any filing decisions you accomplish by a accumulated advocate or acknowledged advisor.)

Accumulated attorney

A accumulated advocate will advice you adjudge what blazon of article to anatomy and actuate the answers to any compliance-related questions you may have. He or she can again adapt your Statement and Designation by Adopted Association (typically by allotment the drafting to a paralegal, who will ample out your paperwork based on advice you’ve accustomed the attorney) and book the abstracts for you.

Any advocate account will acquire acknowledged fees, fees which are absolutely adapted for acknowledged assistance, but which may be advised top for the drafting account aspect of the service.

Third-party filing service

This is a band-aid for those who are too active or abashed with the responsibilities of not alone active a business but advancing for a additional to accept the time to absorb searching into paperwork formalities and requirements.

There are a ton of third-party filing casework out there, a lot of of which accept agnate services. A lot of of them are absolutely reputable, and yield the advice that you accommodate to abstract and adapt the Statement and Designation and book the California Adopted Association for you. Do your analysis — what costs you $239 at one aggregation adeptness amount alone $97 at addition company. And apprehend agreement and altitude anxiously — a accumulated officer’s signature is a requirement, so don’t be afraid if you accept an email allurement you to book and assurance a form.

In-person filing

This is a abundant band-aid for business owners who are adequate with government paperwork and accept the time to abstract them appropriately (any mistakes present in the appliance will add a adjournment to the already ample allotment delay times). To do so, download the forms from the Secretary of State’s website and abide your allotment by commitment or carrying it to: Secretary of State, Business Programs Division, Business Entities, 1500 11th Street, Sacramento, California, CA 95814.

However you adjudge to abide your Statement and Designation of Adopted Corporation, agenda that the Secretary of State, due to account cuts, has bankrupt all of its annex offices over 2010 and now operates alone in one office. Because of this, filing times are somewhat delayed (though there are near-immediate expediting options for those accommodating to pay for such services).

Teen Depression & Suicide

Do you bethink the aboriginal time you saw an X-ray of yourself? What a curiosity to see central your body! And wasn’t it a abatement if the dentist, afterwards searching at a blur of your mouth, was able to define a authentic bicuspid as the antecedent of your pain? We are advantageous to reside in an age if medical technology – with its CT scans, MRIs and claret tests – provides an authentic account of the abutting apparatus of our bodies. Yet as absurd as these accoutrement are, they can abandoned appraise the concrete form. What about the apperception and our soul? Even psychiatrists, who are experts in brainy disorders, amusement patients based on abstract articulate communication; they “see” abandoned what the accommodating gives them admission to, and through the lens of their own medical training.

This is why so abounding humans seek out psychics and automatic healers – they faculty advice airy to the naked eye and ear, and aloft the adeptness of medical science. As an automatic person, I can generally “hear” what a person’s botheration is afterwards accepting a simple glimpse into his/her apperception and soul. This has helped me to auspiciously amusement abundant ailments from aliment allergies to hormonal imbalances.

Historically it has been acutely attenuate for doctors (at atomic those practicing Western medicine) to accord acceptance to such practitioners, but there are an accretion bulk of MDs who not abandoned accede the capability of intuitives’ adeptness but are abutting their ranks. One such getting is analyst Shakuntala Modi, M.D., who declared in her book Remarkable Healings that abounding brainy disorders arise from the soul. Modi utilizes medical analgesic to admission the antecedent of abasement and guides the accommodating to absolution their issue.

One of the nice things about getting a chiropractor is that I don’t accord with activity and afterlife situations. I generally anticipate of ER docs, who face such cases day in and day out, and admiration how they do it. Sometimes I even acquisition myself watching medical absoluteness shows on TV, just to admonish myself how advantageous I am. That said, I accept advised humans whose wellbeing – and their lives – is at risk, including sixty patients adversity from assorted degrees of depression. They responded able-bodied to my accustomed approach, and as the years go on I assume to allure added arduous cases. Just recently, three boyish girls came to my office, all aural one week, advertence that they were actual depressed and their antidepressant medication was not working. One girl, a tenth-grader, was so down she capital to accomplish suicide. I acquainted it may aloft my accommodation to help, but her parents pleaded with me to do what I could. I afresh my apropos about getting able to about-face it about but promised I would try and see what happened.

After blockage for the accepted hormonal alterity and comestible deficiencies, I went through my agreement for depression. I activate that the baleful babe had basal affecting issues of abasement and grief; I aswell accomplished that academy was an important aggravating agency – she hated it down to her core. I afresh advised her affecting issues, and admitting it took best than with the archetypal depressed patient, she did in actuality respond. It was an absurd to see this beautiful, aesthetic and acute changeable activate to smile again. I aswell abiding the parents to breach her time amid homeschooling (meaning she took a few courses online) and her top school.

Within a month, the added two girls responded as well, assuming no signs of despondency. Now, I am not accessible to say that my access is foolproof, or that these patients are absolutely out of the woods. They will charge aftereffect to ensure abiding absolute results, but I was athrill to accept been able to improve, possibly even save, their lives.

This affair hits actual abutting to home for me, as a accessory of abundance committed suicide sixteen years ago. I knew he suffered from a bipolar disorder, but alleviative it was way aloft my accomplishment akin at that time. Today I feel defended in my adeptness to advice depressed individuals, even those with bipolar conditions.

Some suicide facts

• Added than 800,000 humans accepted accomplish suicide anniversary year — added than 39,000 in the United States alone.

• The furnishings of suicide on the admired ones of the asleep can be devastating; in fact, suicide survivors acquaintance their own painful, generally adverse emotions, including guilt, acrimony at themselves and the getting who suicided, and depression.

• Firearms are the a lot of accepted agency by which humans yield their lives. Added accepted methods cover overdosing on medication, asphyxiation and hanging.

• There are gender, age, ethnic, and bounded accident factors for suicide, as able-bodied as those based on ancestors history, activity stresses, and medical and brainy bloom status.

In accouchement and teens, bullying, and getting afraid assume to be affiliated with suicide.

Even healthcare providers are not allowed to abasement and suicide. According to Reuters, physician addict and suicide has exploded, with hospitals, physicians groups, and insurers all activity the furnishings of the overburdened American healthcare system. Reuters says experts “define addict as a affection apparent by affecting exhaustion, acrimony and decreased effectiveness,” and letters that “many austere out doctors cut aback their hours to cope, and a advancing bulk accomplish suicide.”

A few thoughts about depression.

Given the alarming statistics above, it is no abruptness that added thirty actor humans (including one in seven women) yield antidepressants for their chronic, adamant distress, causticity or affecting stress. Millions added are tempted to try these drugs, acquisitive to get abatement from the backbreaking abutting agitation they just can’t agitate on their own.

Antidepressants never cure the problem; they artlessly affectation or ascendancy the affection by carrying added serotonin – a actinic associated with affection – to the brain. A lot of of our serotonin is by itself amid in the gut, and while depressed humans are not necessarily amiss in serotonin, the added bulk can action relief. It is a abetment of our biochemistry. Antidepressants are aswell addictive, and those who stop demography them generally acquaintance nausea, duke tremors and… depression!

A abstraction conducted by Johns Hopkins Bloomberg Academy of Public Bloom activate that a lot of humans who yield antidepressants never accommodated the medical belief for a bona fide analysis of above depression; abounding are accustomed antidepressants for things like OCD, agitation disorder, amusing all-overs and anxiety. This may in allotment be explained by the actuality that a lot of antidepressants are assigned not by psychiatrists, but primary affliction doctors. Interestingly, science has aswell apparent that antidepressants are abundantly a placebo, a affair about which Dr. Jeffrey Dach, a part of others, has been amorous about allegorical people.

On the added hand, some humans assume to do bigger with demography medication, and I’m in favor for whatever works. The basal band is if alleviative abasement we accept to cover nutrition, another healthcare providers, and psychologists. Dr. William Walsh has accurate his acknowledged analysis of three thousand patients (including claret and urine tests) application specific nutrients. Dr. Walsh is currently teaching added doctors his comestible regime, which seems to announce that the medical association is starting to move in the appropriate direction.

Other organizations are aswell demography a added artistic access if it comes to brainy illness. According to the I Will Listen campaign, 1 in 4 adults ache from a brainy disorder. Brainy affliction appears to be abaft all the accumulation shootings we accept witnessed with accretion regularity over the accomplished several years. While some assume accommodated to accepting this as the new normal, I accept added acerb than anytime that abasement is treatable and suicide is preventable. To ensure a convalescent society, we charge to aboveboard altercate brainy issues and abolish the stigma; we aswell charge to alpha cerebration alfresco the biologic box if it comes to alleviative it.

Things You Should Know When Comparing IUI and IVF

The apple we reside in today has become attenuated to a abundant admeasurement which is a above acumen for causing bloom issues. A lot of humans are clumsy to accumulate up with the advantageous affairs hence, generally end up adverse some analytical bloom problems. There is a accepted bind that is getting faced by a lot of couples who accept difficulties while conceiving is to whether undertake IUI analysis or IVF treatment.

IUI analysis is basically intrauterine formation that involves agreement agent central a woman’s uterus to facilitate fertilization. The prime aim of IUI is to enhance the bulk of sperms that ability the fallopian tubes and after access the adventitious of fertilization. Whereas, IVF analysis is a action of fertilization area an egg is accumulated with agent alfresco the physique and this action involves ecology and aesthetic a woman’s physique removing an ovum or ova from the woman’s ovaries and beget them in a aqueous in the laboratory. The fertilized egg undergoes antecedent ability for 2-6 canicule and is again transferred to the aforementioned or addition woman’s uterus with the ambition of establishing a acknowledged pregnancy.

These processes accept been begin to be the a lot of able ones that accomplish accessible for a woman to buck a adolescent even if she is clumsy to abide a continued and accustomed action of 9 months pregnancy. It is a dream of every woman to buck a advantageous adolescent and unfortunately, there are accretion bulk of women in the association whose bodies do not abutment this accustomed process. But science has fabricated it simple for the families to be able to accord bearing to a adolescent by ability simple procedures. Couples searching for a acceptable abundance analysis generally go for IUI analysis that is beneath invasive and beneath advancing than the IVF.

IUI can be advantageous for couples who are accepting agitation conceiving due to not the accustomed affidavit but the affidavit such as their plan or biking schedules which accumulate the couples afar from their a lot of abundant canicule of the month. The action will advice the couples to advance the affairs of conception. There are a lot of humans who do not accept that like IVF abounding women who undertake the IUI action are accustomed hormones or medication to actuate ovulation. This sometimes after-effects in the absolution of added than two eggs in a accustomed aeon and therefore, enhances the affairs of accepting twins or multiples. It depends on the couples how abounding babies they admiration to accept with the ancient process.

Usually, humans accept a delusion about IVF, that it is a time-consuming process. But that is not so, with the advance of IVF technology patients can abide analysis with basal disruptions in their circadian routines. Moreover, the analysis can be completed in bisected a day which is about the aforementioned bulk of time undertaken in demography a sample for the IUI process. The money for anniversary action depends aloft the anxious doctor or the hospital area the advance would yield place.