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Form your business in just three simple steps with the trusted leader in online incorporation.
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A distinctive and appealing name helps your business stand out. Our formation services include a thorough name availability check, and we can assist in securing your desired name in your state, if applicable.
Most states require a designated registered agent (also known as a statutory agent) to handle legal notices and official business documents. We offer registered agent services to streamline compliance and ensure your business stays informed.
Corporations must file incorporation documents that outline key business details, including location and legal structure. Requirements vary by state, but we ensure accurate filing with the appropriate government agency, typically the Secretary of State.
Profits are only taxed at the shareholder level, as earnings pass directly to owners, avoiding the double taxation that applies to C corporations.
S corporations can have a maximum of 100 shareholders, all of whom must be U.S. citizens or legal residents.
Ownership is limited to common stock, granting voting rights but restricting other investment options.
The company pays corporate income tax on earnings, and shareholders are taxed again on any distributed profits.
There are no restrictions on the number of shareholders or their residency status in a C corporation.
C corporations can issue both common and preferred stock, with preferred shareholders often having priority over dividends but lacking voting rights.
There are typically four types of fees for incorporation: a fee to file the articles of incorporation, which depends on your state; a first-year franchise tax prepayment, which can range from $800 to $1,000; fees for various governmental filings, which can range from $50 to $200; and attorney fees, should you seek attorney help.
Both types of business entities help protect owners from being personally on the hook for business liability or debts. LLCs have one or more individual owners, while corporations have shareholders, and corporations generally have more formal record-keeping and reporting requirements.
Even though LLCs are considered easier to start and maintain, investors tend to prefer corporations.
Articles of incorporation are a requirement for forming a corporation. They comprise a formal document that establishes the corporation as a separate business entity.
The articles become a public record and provide important information about the corporation, including its name, contact information, and information about its shares of stock. The exact information that the articles need to include vary by state.
Think of shares as your piece of the ownership pie—and there are two main types (i.e. “common” and “preferred”).
Common shareholders have voting rights and can receive dividends if they’re issued. Preferred shareholders have priority over common shareholders when it comes to dividends and payout claims (if the corporation becomes insolvent).
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