Help Center

Instant answers. What can we help you with?

View All Topics
C Corporation Information

The benefits of filing a C-corporation

When deciding whether or not to convert a company to a C-corporation, entrepreneurs should consider whether the level of paperwork and taxation structure is the right fit for the business.

Incorporation adds legal protections that can help keep personal assets secure and possibly reduce taxes. There are several options, including C-corporations.

“Among the different types of business structures available in the U.S., almost all larger corporations with more than 100 shareholders and virtually all publicly traded companies are C corporations,” writes Elizabeth Wasserman for Inc. magazine.

LLCs and S-corporations are often more popular among smaller businesses because they don’t mandate regular meetings and normally require less paperwork, Wasserman observes. But, if a business faces financial losses, shareholders may take the hit on their tax returns. This is because both LLCs and S-corporations pass profit and losses to individuals with a stake in the company.

Other key benefits of C-corporations include medical reimbursement plans that employees can receive tax-free, added ownership arrangement flexibility for venture capitalists who want to invest in the startup, an easier transition to becoming a public company and the opportunity to collect future expansion earnings at a lower cost.

More Answers to Your Questions

How Our Service Works

Take a moment to view our instructional video and see how easy it can be to get your business incorporated.

Helpful Tools for Decision Making

Select your business type to see how Incfile can work for you.

Launch
Your Business with Incfile

No contracts. No surprises.

Only $0 + state fee to launch your business.

Launch Your Business