What is a Corporation?: explained.
Corporation explained: types, governance, taxes, when to choose. Below: the key questions answered, when this matters, and how to act inside your BOS.
Common questions.
What is a corporation?
A corporation is a business structure that exists as a separate legal entity owned by shareholders, offering strong liability protection and the ability to issue stock, which makes it the standard vehicle for raising investment. It has more formalities than an LLC, like a board, bylaws, and meetings. We form your corporation and keep it compliant.
What is the difference between a C-corp and an S-corp?
A C-corp is the default, taxed at the entity level with potential double taxation but able to take unlimited shareholders and investment, while an S-corp is a tax election that passes income through and avoids double tax but limits ownership. We flag which fits so your corporation's tax treatment matches your plans.
Why would I choose a corporation over an LLC?
Corporations suit businesses raising venture capital or issuing stock, since investors expect the structure and it handles equity, options, and priced rounds cleanly, whereas an LLC is simpler for most small businesses. We flag which structure fits your goals so you form the one your funding and growth plans actually require.
How is a corporation taxed?
A standard C-corporation pays tax at the corporate level, and shareholders pay again on dividends, the double taxation people cite, while an S-corp election passes income through to avoid it. We flag the trade-offs so your corporation's tax treatment fits your situation rather than defaulting into double tax unnecessarily.
What formalities does a corporation require?
Corporations must adopt bylaws, appoint a board of directors, issue stock, hold meetings, and keep minutes, more structure than an LLC, and maintaining these formalities is part of preserving liability protection. We flag and help maintain the required governance so your corporation stays valid and in good standing. See bylaws.
Does a corporation protect my personal assets?
Generally yes, if you respect the entity: shareholders are typically not personally liable for corporate debts, so claims reach the corporation rather than owners, provided you keep finances separate and observe the formalities. We keep your corporation organized so the liability shield holds rather than being pierced for neglect.
How do I form a corporation?
You choose a state, pick a name, file articles of incorporation, appoint a registered agent, adopt bylaws, issue stock, and get an EIN, then handle any S-corp election and ongoing compliance. We handle the incorporation, EIN, and agent so your corporation is set up correctly from the start.
What ongoing requirements does a corporation have?
Corporations generally file a periodic annual report, keep a registered agent, hold board and shareholder meetings with minutes, and pay any state taxes, so compliance is more involved than an LLC's. We track these on a compliance calendar so your corporation stays in good standing.
Can File.Business form my corporation?
Yes: we check your name, file the articles of incorporation, provide the registered agent and bylaws, obtain the EIN, and keep your annual reports and formalities on track, so your corporation is formed correctly and stays compliant. See incorporation.