Start a Corporation
Includes State Filing Fees, Corporate Kit
& Free Consultation with an Experienced Illinois Attorney
There are many advantages to when you Start a Corporation, not the least of which is liability protection. Incorporating can also provide tax advantages, allow you to seek outside investment, protect the corporation’s name and establish credibility with customers. See the Why Incorporate page for more advantages of incorporating your new business, sole proprietorship or partnership.
If you are not sure which entity to form please visit the Which Entity is Right For Me page for a comparison of S Corporation vs. C Corporation vs. LLC.
What’s the difference between a C Corp and an S Corp?
A C Corporation and an S Corporation are exactly the same in respect to liability protection. The difference is in how you are taxed. A C Corp has what is referred to as a double taxation. First, the corporation itself is taxed on the profits it makes and when those profits are distributed to the Shareholders as a dividend, the Shareholders report the dividend as income on their individual tax returns. So essentially you are paying taxes twice on the same money your corporation makes, thus the double taxation. An S Corporation is a tax election a C Corporation can make in order to eliminate the corporate level tax. This allows the earnings to pass through the corporation to the Shareholders. You only pay taxes once on the earnings. This is a great tax advantage, possibly cutting the taxes on a corporation’s profits in half. However, you must qualify in order to elect to be taxed as a Sub S. The essential requirements are: 1. The corporation cannot have more than 100 shareholders. 2. All shareholders must be either a US citizen or permanent resident. 3. The corporation cannot have more than 25% of its income derive from passive activities (i.e. money from rents, property ownership or investments) 4. The corporation can only have one class of stock (i.e. no preferred stock, but you may have voting and non voting common stock)
AMC LEGAL CAN HELP
If you are still unsure, please feel free to give us a call. AMC Legal is here to make incorporation as easy for you as possible.
If you have decided to form a Corporation or a Sub Chapter S Corporation and would like more information you can see what’s included in the basic package by clicking the link below. You can then read over the many other services that are offered by this Firm in the Corp Services Page as well. Please read the Services page carefully. It contains very important information regarding other filings that are required as well as information regarding liability protection and taxes.