Corporation or S-Corp
Ready to take your business to the next level? Forming a Corporation or S Corporation offers enhanced credibility, limited liability, and tax benefits. An S Corp allows pass-through taxation, saving you money while protecting personal assets. Get started today and unlock growth potential!
S-CORP
C-CORP
S-Corp Taxation
S-Corp taxation allows profits to "pass through" to your personal tax return, avoiding double taxation. You only pay taxes on your share of income, not corporate profits, offering potential savings.
C-Corp Taxation
C-Corp taxation involves the business paying taxes on its profits, then shareholders paying taxes on dividends received. This results in double taxation but allows for more flexible profit distribution and reinvestment.
S-Corp Federal Tax Filings
S-Corps file Form 1120S with the IRS, reporting income, deductions, and shareholder allocations. Income "passes through" to shareholders, who report it on their personal tax returns, avoiding double taxation.
C-Corp Federal Tax Filings
C-Corps must file Form 1120 with the IRS for federal tax purposes. This report details income, deductions, and credits, and the corporation pays taxes on its profits before distributing dividends.
S-Corp State Tax Filings
S-Corps may need to file state-specific forms, such as Form 100S in California or similar in other states. States may tax S-Corp income differently, and some may require an additional state filing.
C-Corp State Tax Filings
C-Corps must file state-specific tax forms, often similar to federal Form 1120. States may impose their own corporate income tax, and rates vary, requiring additional filings beyond federal requirements.
S-Corp Stock
S-Corps can only issue one class of stock, limiting ownership structure. Shareholders must be U.S. citizens or residents, and profits "pass through" to personal tax returns, avoiding double taxation.
C-Corp Stock
C-Corps can issue multiple classes of stock, allowing for flexibility in ownership and funding. Shareholders may receive dividends, but they’re taxed at the corporate and individual levels, leading to double taxation.
S Corporation
You need to meet these requirements:
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Be a domestic corporation (LLC).
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File for S-Corp within 75 days of forming your LLC
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Have 100 or fewer shareholders.
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Shareholders must be U.S. citizens or residents.
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Issue only one class of stock.
Corporation
You need to meet these requirements:
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Be a domestic corporation (LLC).
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File for S-Corp within 75 days of forming your LLC
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Have at least one shareholder.
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Issue one or more classes of stock.
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File Articles of Incorporation with the state.