The benefits of setting up your business as a C-Corporation.
There are many ways to set up your business. When you are deciding on the right path for your business, you will have many factors to consider in your decision. A corporation is different to other business entities. A corporation is like a legal person, in terms of tax laws, you can save money.
A C-corporation consists of shareholders and directors that will oversee decisions and create policies. With a C-corporation, you will have to file earnings with the state general. A C-corporation is a legal entity, that means that if your shareholders or directors die, the corporation will still exist despite the changes in ownership. Another huge benefit is that the owners have limited liability. This means that if they are sued as a C-corporation, it will not affect their individual assets as a person.
Some of the advantages of a C-corporation are the fact that you will have lower risk of being audited. You will not be held liable for the business debts. There are many tax benefits that will assist your business to grow and sustain a profit. There is no limit to how many stakeholders that will partake in the corporation.
Funds can also be raised with the sale of stocks. That is useful in times in which the company wants to grow and expand its horizons. There is no special rule that says foreigners cannot purchase shares in the company. Shares can be classed into various levels of importance.
A C-corporation has certain rules and regulations that need to be adhered to ensure that it is functioning in an optimal fashion. There has to be proper funding of the corporation. There has to be meetings with the directors and shareholders. The business records have to be up to date.