A Chicago C Corporation Attorney

A C-Corp is a standard corporation and the entity choice for many entrepreneurs forming a new business, especially investors and venture capitalists. C-Corps are an entity separate and apart from the individual or group of people that form them. They have the capability to sue and to be sued. The majority of United States corporations that have more than 100 shareholders as well as the majority of publicly traded companies opt for the C-Corp formation when choosing a legal structure due to the benefits it offers. 

Benefits of a C-Corp

There are numerous benefits to forming a C-Corp. Our Chicago C Corporation attorney explains:

  • Asset Protection: A C-Corp offers limited liability protection to shareholders. Typically, a shareholder cannot lose more the amount they have invested in the corporation. Under most circumstances, they cannot be held liable for any of the corporation's debts, obligations, or judgments. 

  • Unlimited Shareholders: There is no limit to the amount of shareholders a C-Corp may have, and there are no restrictions on who is allowed to hold shares. This is a significant difference between the C-Corp and the S-Corp.

  • Stock Options: C-Corps offer stock options, and selling stock is a simple way to transfer ownership in the corporation. 

  • Ability to Raise Capital: It is easier for a Chicago C-Corp to raise capital than it is for many other business formation types. This is due to the ability to sell and issue stock (or other instruments) as proof of corporation interest. 

  • Growth Potential: If a future goal is to take the business public and allow it to grow, a C-Corp is a preferred method of incorporation. This is because it allows unlimited growth.

  • Credibility: Investors and venture capitalists tend to favor C-Corps over S-Corps or LLCs as shares are a preferred method of ownership. Also, in many situations, it is easier for corporations to obtain lender financing. 

Disadvantages Of A C-Corp

There are two main disadvantages to a C-Corp. They are: 

  • Taxation: C-Corps are taxed in a way that is typically referred to as “double taxation.” A C-Corp will pay income tax on any income it makes, and then the shareholders are paid. Shareholders are then required to pay taxes personally on any income they make. 

  • Rules of Operation: Operating a C-Corp requires much more adherence to formal rules than other types of business formations, such as an LLC. Meetings of shareholders and directors are required. 

Speak With A Premier Chicago C Corporation Attorney At The Law Office of Alexis Hart McDowell

It is natural to have a lot of questions when you are forming a new business, and at the Law Office of Alexis Hart McDowell we have the answers you are looking for. Schedule a consultation with a Chicago C Corporation attorney at Enterprise Esquire so we can sit down with you and explain your options, including what a C-Corp incorporation can do for your business. We also offer cost-efficient packages for C-Corp filings.