Goods and Bads
C Corporation in USA comes with its own pros and cons which is very important for decision making purposes
Advantages
- Limited Liability Protection for shareholders
- Unlimited number of shareholders
- Ability to raise capital through the issuance of stock
- Perpetual existence
- Enhanced credibility
Disadvantages
- Double taxation (corporate income and dividends)
- Extensive record-keeping and reporting requirements
- Potential for loss of control due to shareholder voting
Process
Step by Step Process
Choose a State
Select a state in the United States that meets your bussiness objectives.
Choose a Name
Select a unique name for your C Corp that complies with state naming requirements.
Appoint a Registered Agent
Designate a registered agent who will receive legal documents on behalf of the corporation.
File Articles of Incorporation
Prepare and file the Articles of Incorporation with the Secretary of State in the state where you are forming the C Corp.
Create Corporate Bylaws
Draft corporate bylaws that outline the management structure and operating procedures of the C Corp.
Hold Initial Board Meeting
Hold an initial board meeting to adopt bylaws, appoint officers, and address other organizational matters.
Issue Stock
Issue stock certificates to the initial shareholders of the C Corp.
Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account.
Register for State and Local Taxes
Register for any required state and local taxes, including sales tax and employer taxes.
Open a Bank Account
After the receipt of the EIN, the next step is to apply for a Bank account that correlates with your business goals.
Tax and Compliances
Following are the Compliances that will be required
Corporate Tax
C Corps are subject to corporate income tax on their profits at the federal and state levels. The current federal corporate tax rate is 21%.
Double Taxation
Shareholders are taxed again on dividends received from the corporation, leading to double taxation.
Annual Reports
C Corps must file annual reports and pay associated fees to the state.
Franchise Taxes
Some states impose franchise taxes on C Corps for the privilege of doing business in the state.
IRS Compliance
C Corps must comply with various IRS regulations, including filing Form 1120 (U.S. Corporation Income Tax Return).
Documents Required
Following are the documents that will be required
Identity Proof Residents
US Residents can provide SSN or Driving License.
Identity Proof Non-Residents
Non residents who wish to register an LLC will be required to provide Passport Copy.
Detailed Nature of Business
A detailed business nature will be required from the business owners.
Recent Bank Statement
If non resident, a bank statement providing recent bank statement (less than 60 days) would be required
Deliverables
The service package includes a comprehensive list of deliverables which includes the following.
Certificate of Incorporation
Corporate Bylaws
Employer Identification Number (EIN)
Registered Agent Service
Stock Certificates
State Compliance Checklist
Expert Support
Business Bank Account Setup Assistance
Client Testimonials
Trusted by Business Owners
Real feedback from entrepreneurs who chose Taxkriya for their business needs.
"Excellent service at competitive rates. Handled our company registration efficiently. Highly recommend Taxkriya for any business compliance needs."
Jalal J
C3 Property Store Private Limited
"Professional team that made company formation straightforward. They listened to our requirements and guided us to the right structure. Smooth process throughout."
Krishna Chaitanya
Cognikey Technology Solutions Private Limited
"One of the smoothest LLC formations I've experienced. The team, especially Mr. Gowtham, provided exceptional support from start to finish."
Ganta Sai Akhil
Sketchz Engineering LLC
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