Start your Corporation with confidence
What is a corporation?
A corporation is a business entity formed by filing incorporation documents with the state.
Similar to an LLC, a corporation is a legal entity distinct from its owners, providing protection from business liabilities or debts. However, corporations offer additional benefits, such as the ability to have shareholders and attract outside investors.
3 reasons for creating an LLC
Corporation benefits
Forming a corporation offers several advantages. It provides liability protection, meaning the owners are typically not personally liable for the business’s debts or legal issues. Incorporation also enables you to bring in shareholders and raise funds from external investors.
Corporation requirements
Corporations are generally required to adopt by-laws, hold annual shareholder meetings, issue written resolutions for major decisions, and file annual reports. Our service helps you form your corporation properly and efficiently. We also offer packages that include essential documents and services to ensure you meet these requirements and stay in compliance.
Is a limited liability company a corporation?
A limited liability company (LLC) is a distinct type of business entity compared to a corporation. Each has its own formation requirements, tax regulations, and ownership structure. LLCs generally offer more flexibility in tax and fewer reporting obligations, while corporations facilitate ownership transfer through shares of stock and are better suited for attracting outside investors.
S corporation vs. C corporation: What’s the difference?
S corporation and C corporation designations are both valid choices when incorporating a business—and whichever you choose, we can help make it happen. Before you make your decision, make sure you understand the pros and cons of each.
S corporation
Taxes on profits only
Shareholders only pay taxes on profits received. Income gets passed through to the owners instead of being taxed at the corporate and shareholder level, so you avoid double taxation.Shareholder maximum
The maximum number of shareholders is 100, and they all must be U.S. citizens or residents.Only common stock available
S corporation owners can only get common stock, which comes with voting rights.C corporation
Taxes on income and profits
Income is taxed twice—the business pays corporate income tax on its net income, and then the shareholders also pay personal income tax on the profits they receive.No shareholder maximum
There are no limits on who and how many people can own shares of a C corp.Preferred stock available
C corp owners may get preferred stock, which usually comes with no voting rights but priority to dividends before common shareholders.Ready to start your corporation?
How to incorporate
Choose and reserve a business name
The more catchy and memorable your business name, the greater the chance consumers will choose you over competitors. Our formation services include a name check, and we can reserve a name for you, if allowed in your state.
Appoint a registered agent
Most states require you to designate a person or entity as a registered agent (also known as an agent for service of process or statutory agent). This agent is responsible for receiving lawsuits, subpoenas, and other official documents on behalf of your business. You can appoint us as your registered agent to simplify the process.
Prepare and file articles of incorporation
While requirements vary by state, corporations typically need to file articles of incorporation. These documents establish the legal framework for the business and may include important details, such as the principal location where business will be conducted. When we file these articles for you, they are usually submitted to the Secretary of State.
Frequently asked questions
Incorporation usually involves four types of fees: a filing fee for the articles of incorporation, which varies by state; a first-year franchise tax prepayment, typically ranging from $800 to $1,000; fees for various government filings, which can range from $50 to $200; and attorney fees, if you choose to seek legal assistance.
Both LLCs and corporations provide protection for owners from personal liability for business debts or obligations. LLCs can have one or more individual owners, while corporations have shareholders. Corporations typically have more formal record-keeping and reporting requirements.
Although LLCs are generally easier to start and maintain, investors often prefer corporations.
It ensures that you and other shareholders are not personally responsible for the company’s debts and liabilities.
Articles of incorporation are a requirement for forming a corporation. They comprise a formal document that establishes the corporation as a separate business entity.
The articles become a public record and provide important information about the corporation, including its name, contact information, and information about its shares of stock. The exact information that the articles need to include vary by state.
Think of shares as your piece of the ownership pie—and there are two main types (i.e. “common” and “preferred”).
Common shareholders have voting rights and can receive dividends if they’re issued. Preferred shareholders have priority over common shareholders when it comes to dividends and payout claims (if the corporation becomes insolvent).