Start your company and grow.
C-Corporation (C-Corp) lawyers will allow your business to rapidly grow by forming your business as a C-Corp.
– Ensure compliance
– Save money long term
– You get much more
Why a C-Corp
A C Corporation (C-Corp) is a standard corporation that allows for an unlimited number of individuals or companies to own a portion of the company by distributing shares of stock. It offers protection to owners, investors, and officers from liability resulting from its actions. If you plan to seek outside funding from venture capitalists (VCs) or angel investors, or envision an ultimate initial public offering (IPO) then a C-Corp is likely the right structure for your company. C-Corporation businesses boast a flexible stock structure, which makes it easy to issue different classes of stock, and for investors to use different financial documents, such as convertible notes, SAFEs, warrants, and subordinated debt. It’s also the best structure to raise equity capital through crowdfunding.
C Corporations also allow for maximizing tax deductions for business expenses and benefits. Additionally, they minimize employment taxes since shareholder-employees of C-Corps pay FICA (Social Security and Medicare) taxes only on wages they receive. They’re also attractive to foreign investors (unlike S-Corps, which cannot have any non-resident shareholders). Other strengths include the ease for an investor to exit a C-Corp and that dividends the C-Corp earns from other corporations are largely non-taxable.
Your company’s incorporation essentially serves as its foundation. Don’t settle for a weak foundation.
Save money long term
The formalities for a C Corporation formation are extensive, making it smart to prepare for them as early as possible. C Corporation lawyers will advise you on them and confirm that a C Corporation is even the appropriate business form given your circumstances.
You get much more
Working with C Corporation lawyers during formation will usually lead to helpful hints on other matters, such as employee relations, intellectual property, and tax advice.
Should I form a C Corporation or an S Corporation?
It’s hard to say without knowing specifics on your company. Given the restrictions that come along with an S-Corp, a C-Corporation offers a bit more flexibility when starting a business. A C-Corporation is a standard corporation whereas an S-Corp has a special tax status assigned to it by the IRS. Both types of corporations offer limited liability protection, have similar structures, corporate formalities, and both are considered separate entities. However, despite their similarities, they have distinct differences.
C-Corps are separate taxable entities and are subject to double taxation. Conversely, S-Corps are pass-through entities and pay no corporate income tax. As a result, taxes are paid at the individual level. S-Corp restrictions include no more than 100 shareholders and they must be U.S. citizens or residents. They can also not be owned by other corporations, LLCs, or partnerships. Finally, S-Corps can only have one class of stock while a C-Corporation can have multiple classes. Interested in an S-Corp? Check out more.
I know I want a C-Corp – but in what state should I set it up?
That’s a question a C-Corporation business lawyer can answer for you. It ultimately depends on a set of criteria, including where you’re going to conduct the majority of your business, where your headquarters will be, and if you’re going to seek venture capital/angel funding. With all that said, Delaware is the most common state for C-Corps to incorporate in, but Wyoming and Nevada are corporate-friendly states as well.
What’s limited liability protection?
It’s the biggest reason why people choose to incorporate their businesses. It provides owners protection from their personal assets against creditors’ claims. As long as the owners truly treat their business as a separate entity, they retain such protection.
What’s an EIN?
It’s the Internal Revenue Service’s (IRS) way of identifying businesses for tax purposes. For federal income tax purposes, a C-Corp is recognized as a separate tax-paying entity.
What’s a registered agent?
A business or individual designated to receive service of process when a business is a party in a legal action or when the state attempts to communicate with the company. Some states, like Delaware, require entities registered within its jurisdiction to maintain an in-state registered agent.
Daniel, H. | ★★★★★
“Simple and trustworthy system. The project manager through text message is a good idea and helps a lot with the process, especially their timely response.”
Rafael, R. | ★★★★★
“I was very comfortable with the environment it was my first meeting and I knew it was on the right track I did understand my lawyer I was listening I did absorb the information given to me.”
Ori, A. | ★★★★★
“Great experience all around, LawTrades was just so much more personal and much better than other startups/online on-demand solutions for legal work. Almost feels like I handpicked and hired the attorney myself. The Attorney was available to answer questions by phone or text message, so was the LawTrades rep who set the whole thing up. And when setting up new entities you always have questions, so this was a big deal for me. The Attorney assigned to my project was available on-demand to help out explain things every step of the way and I think the guys at LawTrades have done a great job with making you feel extremely comfortable. After all, was done I even got an email and a call from one of the co-founders of the company to make sure I had a seamless experience. I never got a call from other companies I had used in the past like Legal zoom and the whole thing always felt so automated. Yes, granted Legal zoom probably have way more clients than Lawtrades and as such would not be feasible for their management to call everyone, however, that was a nice touch which I do appreciate. I will definitely be heading back to Lawtrades whenever I require legal assistance.”
Tamas, P. | ★★★★★
“Price. I know what I am paying instead of getting surprised. Transparent pricing I know what each bit costs instead of getting a big bill and not knowing what parts cost what and how much was for service vs hard fees such as filing fees. Also, things progressed rapidly.”
Yash, P. | ★★★★★
“Amazing service, i can’t get over texting to get a lawyer. it’s revolutionary and can legitimately improve the US justice system for people with no access to quality lawyers.”
Janet, S. | ★★★★★
“Quick and easy, I used LawTrades and worked with attorney Jonathan Hood to review an NDA. I got my questions answered right away. Arman was a great help making the connection. Would highly recommend the service.”