C Corp

What is a C Corporation?

The C Corp business structure positions your company as a legal entity that’s separate from its owners or shareholders. Most traditional corporations, like the ones that are traded on the stock market, are C Corp.

What are the advantages of a C Corp?

Typically, C Corps are larger businesses with more complex needs. The core advantages of the structure can help such business continue their growth trajectory.

Increased protection

Forming a C Corp helps protect your personal assets from business liabilities.

Room to grow

C Corps have no limits on the number of shareholders and can have foreign owners.

Connection to capital

A C Corp can raise money by selling stock to investors and become publicly traded.

C Corp tax implications for your business:

As a C Corp, the entity pays corporate income tax and must file a separate tax return for the business. The shareholders pay tax on their individual dividends. Visit our resource center to examine the key tax considerations for different types of corporations.

Other considerations

Often used by larger companies with many employees

Can have owners who are not U.S. citizens or residents

Must appoint officers and maintain a board of directors

Most states will require an annual report filing

Quarterly tax payments are generally also required

Maintaining proper corporate governance and legal compliance formalities can involve a lot of time and energy

Just need an S Corp Election?

If you already have a C Corp and want to take an S Corp election, we can help! Click Get started, then simply select LLC + S Corp and indicate you already have a business entity. We’ll complete your S Corp election form for you to sign and submit.

Start forming your business in minutes.

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Tell us about your business.

Enter your business info, pick your business type, and fill out our forms in as little as 10 minutes.

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Let us do the work.

Get back to business as we work with the state to file your paperwork with 100% satisfaction guaranteed.

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Get excited!

You’re official! We’ll provide you with your business documents while you change your title to CEO.

Is a C Corp the right business structure for you?

Answer a few quick questions, and our Help Me Choose tool can help you move closer to finding the right business structure fit.

Ready to learn more about business services?

Let’s start saving you time and money with affordable, year-round expertise.

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Small business tax preparation 101: What to bring to tax appointments

Beneficial Ownership Report Guide: Requirements and Meaning

How is an LLC taxed: What are your options?


C Corp FAQs

Most traditional corporations like the ones that are traded on the stock market are C Corp. A C Corp is a tax status that is subject to double taxation — the C Corp pays tax on its income and the shareholders pay tax on the dividends they receive from the corporation. The corporate tax rate is less than the individual tax rate.

The main difference in the way the business is taxed. C Corp are taxed twice — the business pays taxes, as do the shareholders on their profits. When a business takes an S Corp election, only the shareholders pay taxes on their profits.

Read on to learn more detail about different business structures.

First, you form a corporation by filing incorporation documents with a state’s Secretary of State’s office. To do that with Block Advisors, you’ll need to choose a business name, appoint directors, file articles of incorporation, create bylaws, ensure you’re keeping accurate books and records, and issue stock. As you operate your business, the corporation’s default federal tax status will be a “C Corp” unless you make a valid S Corp election.

An EIN is an employer identification number and is needed in certain situations. For example, partnerships and corporations are required to have an EIN. Sole proprietorships and LLCs that have employees, pay excise tax, or contribute to a retirement plan also need an EIN. EINs are included with all of our packages.

We’ve got the expert insights your business needs.

Check out our resource center to learn more about taking your business from self-employed to an LLC, C Corp, or S Corp.

Why is choosing the right business entity important?

The type of business you choose is critical as it affects everything from the taxes you pay to different liabilities.

What is a corporation? How they work and how to incorporate.

A corporation is a business that is considered a legal entity separate from its owners, who are called shareholders.

LLC vs. C Corp: What’s the difference for my taxes?

As you contemplate what to register your business under, you might come across two options: An LLC and a C Corp. We can help you understand both.