Types of Businesses and Corporations Including "C" Corporations, "S" Corporations, LLCs & Non-Profit Corporations

Most common type of corporation which allows for an unlimited number of stockholders. This type of entity may raise capital by the issuance of stock. Compare Fees for Incorporation by State

This type of entity, where available, limits the number of stockholders to approximately 30. The stock of a close corporation cannot be publicly traded and there are some limitations on the transfer of stock.

A general corporation may elect to become an S corporation by preparing IRS form 2553 (included in our corporate kit). The corporation must make the election within 75 business days of the date of incorporation in order to elect that tax year. S corporations avoid double taxation because the profits and losses are reported on the personal tax returns of the shareholders. Recently, the maximum number of shareholders of an S corp. was increased from 35 to 75. There are some restrictions with an S corp. so we encourage that you seek advice of an accountant or attorney before making the S election.

The newest type of structure which is now available in all 50 states including the District of Columbia. The LLC combines the pass through taxation advantages of a partnership or S corp. and the limited liability aspect of a corporation. The main differences between the LLC and the corporation is that LLC's cannot have or issue stock and in some states the LLC can only exist for a maximum of 30 years. Compare Fees for LLC Formation by State

A corporation that is restricted from having or selling stock. Any income or profit cannot be passed to the directors, officers or members. A non-profit seeking tax exempt status must apply with the IRS. We recommend that you seek assistance from an attorney or accountant when applying for tax exempt status. *We prepare generic non-profit Articles of Incorporation and therefore recommend that your attorney or accountant prepare the incorporation documents so that it meets the IRS requirements under Section 501 (c)(3).