Learn About Establishing Your Corporation
This month, we will provide you with an overview of corporate law. When it comes to establishing your corporate identity, doing so legally is of utter importance. Knowing the steps to take to have your corporation recognized at the appropriate level is necessary to receive tax benefits. Learn all about corporate law and the benefits of having a corporate law lawyer on your side.
Understand that Not All Corporations Are the Same
The two different types of corporations with their own sets of advantages and disadvantages; “C Corporations” and “S Corporations”. When it comes to taxation, liability, and ownership, each has their own benefits and downsides. With “C Corporations”, owners, or shareholders, pay taxes separately from the entity.
These are the most prevalent of the two types and are also subject to corporate income taxation. “S Corporations” can elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Comparatively, C corporations have no limits on how many people and who can own shares.
S Corporations Provide Great Taxation Benefits
S corporations can only have up to 100 shareholders who must be U.S. citizens or residents. They also offer the greatest benefit in the form of “pass-through” taxation. The taxes pass through from the business to their owners, meaning that they only require payment once.
Most states require corporations to conduct annual meetings with their shareholders. For example, many require more frequent meetings of the board of directors and the corporation’s officers. There is usually an attorney present at these meetings to ensure that the corporation complies with state and federal requirements.
Are You Ready to Establish Your Corporation in Pennsylvania?
Pennsylvania law incorporates several types of specialized corporations. By law, to write Articles of incorporation, an attorney does not need to be involved. With complex legal issues involved when starting any business, it is a wise decision to seek legal counsel before filing. Doing so will assure that all legal consequences receive proper consideration. For more information and details about establishing your corporation, visit the NOLO legal encyclopedia.
To get an overview of corporate law, call Margaret Zylka House, Attorney at Law at (724) 628-4955. Check out our Facebook for company happenings and more relevant information an overview of corporate law.