Corporation Management

Working with thousands of business companies around the world for Ideas

Each year, thousands of entrepreneurs and small business owners lose everything because they failed to properly form and maintain their businesses. We have seasoned corporate law firm. We are fast, highly automated, and we stand ready to give legal advice and consultation. Many of our clients are businesses who opted to use a “discount” online incorporation service only to find that the wrong entity was formed or that only the bare minimum was done to form their entity; ultimately leaving the business owners subject to personal liability. Be vigilant. Affordably form and protect your business…the right way.

Corporation is a legal entity that will protect you in case of a lawsuit. There are two types of corporations: C corporations and S corporations.
S corporations provide liability savings and tax savings. To see how
much forming an S corporation can save you on taxes, try our corporation
tax savings calculator. Online incorporation is simple and safe when
using the incorporation experts at CBA. Form your corporation with CBA. Call us anytime for a free to speak with an attorney and receive a free incorporation consultation.
CBA provides straightforward, upfront and AFFORDABLE pricing.

We Support Our Clients Five Working Days

Our team will make sure that all corporations are up to date and will even pay the renewals so you never have to worry about late fees or suspesions of your corporation.

It's the most common type of corporation in the U.S. – and with good reason. C corporations (c corps) offer unlimited growth potential through the sale of stocks, which means you can attract some very wealthy investors. Plus, there is no limit to the number of shareholders a c corp can have.

Advantages of a C Corporation

There are many benefits of a c corp. Below are just a few that stand out.

Limited liability. This applies to directors, officers, shareholders, and employees.
Perpetual existence. Even if the owner leaves the company.
Enhanced credibility. Gain respect among suppliers and lenders.
Unlimited growth potential. The sky's the limit thanks to the sale of stock.
No shareholders limit. However, once the company has $10 million in assets and 500 shareholders, it is required to register with the SEC under the Securities Exchange Act of 1934.
Certain tax advantages. Enjoy tax-deductible business expenses.

Disadvantages of a C Corporation

Having unlimited growth comes with a few minor setbacks.

Double taxation. It's inevitable as revenue is taxed at the company level and again as shareholder dividends.
Expensive to start. There are a lot of fees that come with filing the Articles of Incorporation. And corporations pay fees to the state in which they operate.
Regulations and formalities. C corps experience more government oversight than other companies due to complex tax rules and the protection provided to owners from being responsible for debts, lawsuits, and other financial obligations.
No deduction of corporate losses. Unlike an s corporation (s corp), shareholders can't deduct losses on their personal tax returns.

It's kind of like the lite version of a c corporation (c corp). An s corp offers investment opportunities, perpetual existence, and that coveted protection of limited liability. But, unlike a c corp, s corps only have to file taxes yearly and they are not subject to double taxation. Read on if this sounds enticing for your business.

S Corp Advantages

Read 'em and weep.

Limited liability. Company directors, officers, shareholders, and employees enjoy limited liability protection.
Pass-through taxation. Owners report their share of profit and loss on their individual tax returns.
Elimination of double taxation of income. Income is not taxed twice – once as corporate income and again as dividend income.
Investment opportunities. The company can attract investors through the sale of shares of stock.
Perpetual existence. The business continues to exist even if the owner leaves or dies.
Once-a-year tax filing requirement. Versus c corps, which must file quarterly.

S Corp Disadvantages

There's a lot to love, but here's a few things to consider before adding the 's' to your corp.

U.S. citizens and permanent residents only. Unlike the c corp and LLC (Limited Liability Company), you have to be a legal resident of the U.S.
Limited ownership. An s corp may not have more than 100 shareholders.
Formation and ongoing expenses. It is necessary to first incorporate the business by filing Articles of Incorporation with your desired state of incorporation, obtain a registered agent for your company, and pay the appropriate fees. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.
Tax qualification obligations. Mistakes regarding the various filing requirements can accidentally result in the termination of s corp status.
Closer IRS scrutiny. Payments to employees and shareholders could be distributed as either salaries or dividends. Each are taxed differently, which is what leads the IRS to scrutinize that distribution more closely.

Simply put, an LLC is the least complex business structure. Unlike an s corp or c corp, the structure of an LLC is flexible. Starting an LLC also gives you the perk of pass-through taxes, limited liability (obviously), and legal protection for your personal assets. Plus the added benefit of looking more legit than the other guys.

Advantages of Starting an LLC

There are several advantages to creating an LLC, but here are a few that stand out.

Pass-through taxes. There's no need to file a corporate tax return. LLC owners report their share of profit and loss on their individual tax returns, meaning you avoid double taxation.
No residency requirement. Those who an LLC need not be U.S. citizens or permanent residents.
Legal protection. Creating an LLC gives you limited liability for business debts and obligations.
Enhanced credibility. Partners, suppliers, and lenders may look more favorably on your business when it's an LLC.

Compare LLCs and corporations with our business comparison chart.

Disadvantages of Starting an LLC

Creating an LLC is an attractive option, but there are a few hurdles.

Limited growth potential. LLC owners cannot issue shares of stock to attract investors.
Lack of uniformity. An LLC can be treated differently in different states.
Self-employment tax. LLC earnings can be subject to this kind of taxation.
Tax recognition on appreciated assets. This could happen if you convert an existing business to an LLC. One more way that extra taxation can occur.