1 / 9

C Corporations

C Corporations. Michael Vanacore , Max Keenan, Alex Green. Definition. Corporation- created by a group of shareholders in the business that have ownership in the business. In a C Corporation, the business is taxed separately from its owners. Advantages.

michi
Download Presentation

C Corporations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. C Corporations Michael Vanacore, Max Keenan, Alex Green

  2. Definition • Corporation- created by a group of shareholders in the business that have ownership in the business. • In a C Corporation, the business is taxed separately from its owners.

  3. Advantages • Limited Liability- for directors, shareholders, and employees • Perpetual Existence- shareholders keep business alive even if owner/founder leaves • Enhanced Credibility- suppliers and lenders • Unlimited Potential Growth- stock is sold with no limit with unlimited amount of shareholders • Tax Benefits- taxed separately of corporation, not taxed on income, therefore you can receive employee benefits

  4. Disadvantages • Cost to set up- costs money to establish business, fees that owner has to pay to establish corporation • Double Taxation- income that shareholders get from company is taxed more than once • Regulations and Formalities- has to reach standards to be considered ex. Regular board meetings, and shareholder meetings. • Record Keeping- record all fees and income to report to IRS • Intricate Laws- statutes on the federal and state level

  5. Setting Up C Corp • Select a name- make sure it is available • Select a state- be familiar with its laws for a c corporation • Publish a notice of incorporation • File articles of incorporation (aka Certificate of Incorporation)- signed by officers

  6. Setting Up C Corp Continued 5. Write corporate bylaws- rules and regulations governing corporation, information for shareholders is included 6. Select officers and directors- manages daily activities, the board creates budgets and allocates resources 7. Apply for EIN (Employer Identification Number)- IRS identifies business for taxing purposes

  7. Taxation • Pay taxes at a corporate level • Shareholders pay taxes on dividends received • The C-Corp deducts expenses from their revenues and the remaining becomes the taxable income • Ex. business brings in $150,000 in revenue and $80,000 is spent on operating expenses. Only the remaining $70,000 is taxable income. • This is better than an S-Corp since the shareholders pay taxes regardless

  8. Examples of Ownership • Most big companies are C Corporations Ex. Microsoft, Expedia, Fed Ex, UPS, General Electric, Caterpillar etc…

  9. Citations • http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/Corporations • http://www.investopedia.com/terms/c/corporation.asp • https://www.incorporate.com/c_corporation.html • http://www.borelassociates.com/topics/C-Corporation-Advantages-of.pdf • http://www.referenceforbusiness.com/small/Bo-Co/C-Corporation.html • http://www.allbusiness.com/business-planning/business-structures-corporations/2515-1.html • http://www.rocketlawyer.com/article/c-corp-taxation.rl

More Related