What is a Corporation?

A Corporation is a legal entity that is separate from you the individuals owners of the business. It is set up with the goal of making and distributing profits to the owners or shareholders. It is made up of individuals, stockholders, or shareholders. A Corporation as a legal entity can enter into contracts, sue and be sued, own assets, incur tax liability and operate in financial institutions using a unique Tax ID number or EIN.

What is a C-Corporation?

C- Corporation is the most common form of incorporation among businesses and contains almost all of the attributes of a corporation. Profits paid to owners are taxed individually.  The income Owners receive profits and are taxed at the individual level, while the corporation itself is taxed as a business entity.

What is a S Corporation Election?

An S Corporation is different than a C-Corporation because it is limited in the number of shareholders it may have.  Also, rather than being taxed as a separate entity the profits/losses are “passed through” to the shareholders’ personal tax returns.

What is a Non-Profit Corporation or 501(c)3?

This tax-exempt type of formation is used by charitable, educational, and religious organizations to operate without generating profits. Revenue received is retained in the entity to spend on the stated cause of the entity.