Different
Types of Corporations
C
Corp
 Close
Corporation or C-Corp in most
states where close corporations
are recognized, they are limited
30 stock holders. Also when selling
stock, it may have to be first
offered to existing shareholders.
This type of corporation is particularly
well suited to the entrepreneur
who wants to become person, corporation,
or a small group of individuals
who will all participate in running
the business. |
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General
Corporation 
This structure is most
suitable to the corporation, which plans
to have more than 30 shareholders and which
plans to make large public stock offerings. |
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Non-Profit
Corporation 
The non-profit corporation
is best suited for businesses, which plan
to engage in charitable, religious, educational,
or scientific activities deemed socially
beneficial. Net-income of non-profit corporations
must be applied to the attainment of the
not-for-profit purpose and not to enrich
the individual members, officers or directors.
Most non-profit corporation achieve 501
(c) (3) status, or tax exempt status, by
filling the Application for Recognition
of Exemption with the IRS. |
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S
Corporation
 Many
business owners find the S Corporation especially
attractive in that all earnings or losses
are passed through directly to their personal
income tax return. As a result, it avoids
the double taxation feature of general business
and close corporations. Certain requirements
must be met before qualifying for S Corporation
status, and we recommended that you consult
with your tax advisor before electing S Corporation
status. To obtain the special S corporation
tax status, the corporation must have all
shareholders sign IRS form 2553 and this
form must be filed with the IRS 75 days of
the date of incorporation. CHS can assist
you with these filings. |
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Limited
Liability Company
 This
type of business entity has recently emerged
as a superior alternative to corporations
and partnerships. The Limited Liability Company
(LLC) combines the best features of corporations
and partnerships: the corporate advantage
of limited personal liability and the taxation
advantage of partnerships. The LLC is now
recognized in most states and is to traditional
forms of business. For information and costs
for setting up and LLC in Delaware please
contact us. |
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US
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