What a C-Corporation is
A C-Corporation is a corporation taxed on its own. It files its own federal tax return and pays corporate income tax, and the shareholders pay tax again on dividends they receive. Every new corporation is a C-Corporation unless it makes an S-Corporation election, so a C-Corporation needs no extra IRS form to start.
Who it fits
- Founders who plan to raise money from investors, who usually put money into C-Corporations
- Companies that will give stock options to employees
- Owners who live outside the US: individuals who are not US residents cannot own S-Corporation stock, so a corporation owned from abroad is a C-Corporation
- Businesses that expect to keep profits in the company and reinvest them
What it costs to form
The fee is set by each state. See our corporation cost by state table: every figure is read from the state's official website. Some states charge by the number of authorized shares. Coral Filings files with up to 500 authorized shares, the lowest tier, and tells you before filing if you need more. Annual reports and franchise taxes are shown for each state and are paid to the state, not to us.
What you have to keep up
A corporation has more formalities than an LLC: bylaws, a board of directors, shareholder and director meetings, minutes and a stock ledger. Skipping them can weaken the liability protection. Ask an attorney or CPA how this applies to you.
How Coral Filings forms it
We prepare and file the articles of incorporation with the state, act as your registered agent (or use yours), and request your EIN. The same three plans apply as for an LLC. Start a C-Corporation. We are not a law firm and do not give legal or tax advice.
Frequently asked questions
What is the difference between a C-Corp and an LLC?
A C-Corporation is taxed on its own and issues shares; an LLC is pass-through by default and has far fewer formalities. See the comparison page.
Can someone who lives outside the US own a C-Corp?
Yes. Individuals who are not US residents can own a C-Corporation, but not an S-Corporation.
This page is general information, not legal or tax advice. For your specific situation, talk to a licensed attorney or CPA.