Common Questions About How to Form a C Corporation
What are the differences between Officers, Directors and Shareholders?
A corporation has all three of these positions: officers, directors and shareholders. Shareholders are technically the owners of the corporation and are responsible for electing the directors. Directors guide the business and are involved in the big decisions of the corporation. Officers are elected by the directors and run the corporation's day-to-day operations. Depending on your state’s rules, these do not need to be separate people.
What is Form 2553?
If your business is a C Corporation but you'd rather file taxes as an S Corporation, you need to notify the IRS in advance by filing the appropriate paperwork. IRS Form 2553, “Election By a Small Business Corporation,” is required to be filed with the IRS to switch a C Corporation to S Corporation status for federal taxation purposes. To understand how much you could save in taxes by forming an S Corporation, check out our S Corporation Tax Calculator.
What is Form 1120?
During tax time, C Corps must fill out Form 1120. This form allows domestic corporations to report their income, gains, losses, deductions, and credits and figure out income tax liability.
Can Bizee help me Create and Manage My C Corp?
Absolutely! When you form your C Corp through Bizee's Gold or Platinum formation package, you automatically get a Corporate Kit for your corporation. This kit is a collection of forms, papers and other items that makes it easier for you to create and manage your C Corp.
The Gold and Platinum kits include:
– A binder and slipcase personalized with your business name
– 20 certificates for corporate stockholders
– Corporate forms and documents, including formation papers
– A transfer ledger
– Tabbed, Mylar separators to keep everything organized
The Platinum kit also includes:
– A company seal and embosser for embossing your important documents
– A box case for your documents that you can display in your office
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