The Frequently Asked Questions About C-Corps and Finding an Experienced Attorney
The Importance of C-Corp Regulation for Entrepreneurs and Executives in a Complex Business Environment3 min read
As businesses are becoming more complex and the regulations governing them ever more strict, it’s essential for entrepreneurs and executives to have an understanding of c-corp regulation. Whether you’re considering going public or simply want to stay informed about c-corp matters, there are many questions you may have. Luckily, help from experienced lawyers is within reach for even small businesses, from Chicago to the rest of the country. Here are some of the most frequently asked questions around c-corp regulations, and how to find expert legal help with business c-corp questions.
What is a c-corporation?
A c-corporation (or ‘C Corp’ for short) is a business designation that specifies a particular kind of corporation. C Corps are separate entities from their owners, and the business, its owners and shareholders are taxed separately. This type of corporation has certain privileges, like the ability to sell stock and elect board members, but is subject to IRS regulation and higher taxes and fees compared to other types of corporations.
What’s the difference between a C Corp and an S Corp?
The main difference between a C Corp and an S Corp (or ‘small business corporation’) has to do with taxation. C Corps are subject to ‘double taxation’, meaning both the corporation and the business owners are taxed. S Corps, on the other hand, are pass-through entities, meaning that any profits or losses the company accrues are passed onto the business owners, who can report them on their personal income taxes.
What kind of businesses should form as a C Corp?
In general, businesses that are looking to either go public or attract venture capital should form as C Corps. This is because the corporation’s taxable income will increase as the number of shareholders and their investments increase, and C Corps provide more structure and formality in this area. This is advantageous to companies looking to scale, as well as investors, as C Corp taxation is generally seen as simpler than S Corp taxation.
How do I find an experienced business lawyer to help with C-corp questions?
Though technology has made many tasks easier, especially when it comes to business, finding the right lawyer is still a challenge for many. With UpCounsel, an online platform for finding a lawyer, that challenge is much more approachable. They make hiring lawyers for all your business needs, whether it be securing venture capital for a C Corp or fighting for your rights as a business owner in a court of law. UpCounsel only selects the top 5% of lawyers to join their network of experienced attorneys, many of whom are well-equipped to help with c-corp related matters. And thanks to the online platform, clients can select an experienced attorney on demand and get connected without the hassle of combing through professional directories.
By providing a network of experienced attorneys with an average of 14 years of practice and UpCounsel’s secure payment system, clients can be sure that the help they receive is top-tier and cost-effective. And because the profiles of each lawyer display ratings and reviews from past clients, you can be sure that the lawyer you hire has the experience and familiarity with local Chicago regulations that you’re looking for.
With UpCounsel, entrepreneurs and executives can have peace of mind when it comes to navigating the complexities of c-corps. Whether you’re looking for one-time consultation or a short-term service with demand for experienced legal help, you can have access to the best lawyers without having to sacrifice quality.
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