Still undecided? Let our Nevada business formation experts help you decide which entity is right for you by calling 1-80. Is a C Corporation or S Corporation the right structure for your new business?ĭon't wait! Take advantage of the protections the law affords you and your business today. This means a double tax on your corporation’s earnings. The main disadvantage of this structure is that it pays tax on its earnings and the shareholders’ dividends. Even better, C corps boast fewer criteria than S corps giving you the options you need to meet your objectives. They can live anywhere in the world and be of any entity. That's why every Fortune 500 company is a C corporation.Īdditionally, there are no limitations on shareholders. It’s also the only tax table where the tax rate drops when you start making millions. On average, C corporations pay less in tax than an individual. In explaining the differences, keep in mind that every state has different laws. There are several types of structures within this entity, but the two recommended by CPAs and attorneys are S and C corporations. This means that a stockholder (owner or partial owner) is a holder of shares of stock in the corporation and is not in legal danger for the acts of the corporation. It’s also the most secure because it’s considered a 'person' with rights under the law. What is a Corporation?Ĭorporations are the most dynamic business entities available offering tremendous flexibility and advantages. Considering structuring your business as a corporation? Not sure if a C Corporation or S corporation is best for you? Keep reading to learn more.
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