C Corporation
From Wikicpa
A C corporation is a form of corporation that meets the IRS requirements to be taxed under Subchapter C of the Internal Revenue Code. It is also known as "C corporation" or "C-Corp". Most major companies are incorporated under a C corporation. After the corporation is created it becomes its own entity and has an indefinite lifespan as long as the yearly filing fee is paid.
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C Corporation vs. S corporation
The main differences between S and C lie in the fact that a C corporation is taxed a Federal Corporate Income tax (see table below) whereas an S corporation is not. It may also have an unlimited amount of shareholders, as well as foreign shareholders, unlike S corporations
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Steps to forming a C corporation
- 1. Choose an available business name that complies with your state's corporation rules.
- 2. Appoint the initial directors of your corporation.
- 3. File formal paperwork, usually called "articles of incorporation," and pay a filing fee that ranges from $100 to $800, depending on the state where you incorporate.
- 4. Create corporate "bylaws," which lay out the operating rules for your corporation.
- 5. Hold the first meeting of the board of directors.
- 6. Issue stock certificates to the initial owners (shareholders) of the corporation.
- 7. Obtain licenses and permits that may be required for your business.
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Taxable Income list
| Taxable Income ($) | Tax Rate | Deduction ($) |
|---|---|---|
| 0 to 50,000 | 15% | 0 |
| 50,000 to 75,000 | 25% | 5,000 |
| 75,000 to 100,000 | 34% | 11,750 |
| 100,000 to 335,000 | 39% | 16,750 |
| 335,000 to 10,000,000 | 34% | 0 |
| 10,000,000 to 15,000,000 | 35% | 100,000 |
| 15,000,000 to 18,333,333 | 38% | 550,000 |
| 18,333,333 and up | 35% | 0 |
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Resources
- wikipedia.org
- Steps for incorporating provided by [1]
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See also
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