Business Formation
The preferred structure for startups seeking investment and unlimited growth potential
+ state filing fees
10,000+
Businesses Formed
50
States Covered
98%
Customer Satisfaction
24/7
Support Available
Overview
A C-Corporation (C-Corp) is a legal business structure that creates a separate legal entity from its owners. C-Corps can raise capital by issuing stock, provide the strongest liability protection, and have perpetual existence regardless of ownership changes.
C-Corporations are the standard structure for companies planning to raise venture capital, go public, or scale to significant size. Nearly all publicly traded companies and most VC-backed startups are C-Corps, including tech giants like Apple, Google, and Amazon.
The "C" refers to Subchapter C of the Internal Revenue Code, which governs corporate taxation. Unlike LLCs and S-Corps, C-Corps pay corporate income tax on profits, and shareholders pay personal tax on dividends (often called "double taxation"). Despite this, the structure offers unmatched advantages for growth-oriented businesses.
Benefits
Key advantages that make C-Corps essential for growth-focused businesses
Issue multiple classes of stock to raise venture capital, angel investment, or go public. No restrictions on number or type of shareholders.
Attract top talent with equity compensation including ISOs, NSOs, and RSUs. Standard compensation structure for tech companies.
Well-established legal precedent for corporate liability protection. Shareholders are protected from corporate debts and lawsuits.
Corporation continues regardless of ownership changes. Easy to transfer ownership through stock sales without disrupting operations.
International investors and partners understand and prefer the C-Corp structure. Standard for cross-border business.
Delaware Court of Chancery provides predictable, efficient resolution of corporate disputes. Preferred by investors.
Requirements
What you need to incorporate
Must include "Corporation," "Incorporated," "Company," or abbreviation. Must be distinguishable from existing entities.
Required in state of incorporation. We provide this service in all 50 states.
Person who signs and files the Articles of Incorporation. We can serve as incorporator.
At least one director required. Directors oversee major corporate decisions and appoint officers.
Number of authorized shares and par value. Delaware standard is 10 million authorized shares at $0.0001 par.
Internal rules governing corporate operations. We provide customized bylaws.
Required for tax filing, bank accounts, and payroll. We obtain this from the IRS.
Process
Professional incorporation in 4 steps
Select incorporation state (Delaware is the standard for startups). We verify your corporate name is available.
Determine share structure, initial directors, and corporate purpose. We guide you through common configurations.
We prepare and file your Articles of Incorporation with the state. Certificate issued upon approval.
Receive your complete corporate kit with bylaws, stock certificates, and organizational resolutions.
State Filing Fees
Government filing fees vary by state
Ideal For
C-Corps are ideal for growth-oriented businesses
Standard structure required by most investors
Required for public stock offerings
Offering equity compensation to employees
Receiving investment from non-US sources
Clear equity structure with vesting
Cap table management and governance
Tax Information
Understanding corporate tax structure
C-Corporations pay federal corporate income tax at a flat 21% rate (as of 2024). This is separate from personal income tax, which shareholders pay on dividends received. This "double taxation" is often cited as a disadvantage, but it can be managed through:
Reinvest profits at the 21% corporate rate instead of distributing as dividends.
Best for: Growth companies reinvesting profits
Pay shareholders reasonable salaries (deductible expense) instead of dividends.
Best for: Active owners working in the business
Qualified Small Business Stock can exclude up to $10M in gains from federal tax.
Best for: Founders and early investors
Compliance
Maintain your corporate status
Hold at least one shareholders meeting and one board meeting per year.
Annual
Penalty: Risk of piercing corporate veil
Document major decisions in corporate minutes and resolutions.
As needed
Penalty: Corporate governance issues
File annual report with state (Delaware requires Franchise Tax Report).
Annual
Penalty: $200+ late fees, dissolution risk
Due March 1 each year. Minimum $175/year for most startups.
Annual
Penalty: $200+ penalties
Everything you need to start your business, bundled together.
C-Corporation Formation Bundle
$548
+ state fee
+ state filing fee
Everything included in your package:
We handle all state filings and amendments throughout the lifecycle of your business.
FAQs
Common questions about C-Corporation Formation
From $299. 7-14 timeline. Expert support included.