Find here all the information related to Corporations and why these could be the best option for your business.
For every entrepreneur it is important to know their different options before making any decision, and when choosing the type of company to form in the United States, this is not an exception. For this reason, here you will find the information you need to know about the corporations in this country.
A corporation, (also known as C-Corp) is a type of company managed by a board of directors elected by the shareholders.
This type of company can trade shares on the stock market, therefore, they are attractive to potential investors. It has the advantage of acquiring capital more easily.
Because a Corporation is a separate legal entity, the commercial debts of the business are separated from the liabilities of the directors, investors, and shareholders.
Anyone, whether or not a resident of the United States. that has the following requirements:
No, when the shareholders of a corporation decide to declare dividends, they must file personal taxes as well.
Not necessarily. This type of company is stipulated for small, medium or large companies without any limit of partners.
The C-Corp differ mainly from the S-Corp in that the latter can be constituted only by American partners and have a maximum limit of 100 shareholders. In addition to their taxation process that you can see in more detail here.
Inc is an abbreviation for Incorporation and Corp is an abbreviation for Corporation, both are acronyms used when forming a Corporation and there is no difference between the two in terms of their legal and tax structure. However these are not interchangeable. Once a corporation is incorporated as an INC or CORP, it must abide by this choice.
The assets of the Corporations are separated from the personal assets of the partners. This means that if there was a lawsuit against the company, it would be solely responsible.In other words, the company’s assets would be the only ones attacked, and not those of the partners.
Corporations (CORP) present and pay income tax as a company. The tax charge is calculated with a fixed rate of 21% on the value of the net profit of the company in its last fiscal year.