What is a C-Corporation ?
What is a C-Corporation?
Corporations function as an independent entity composed of a collection of individuals and identified as such under the law. Within a C corporation, a given amount of profits within the C chapter of the Internal Revenue Code are both handled and taxed independently from the owners. A C corporation is a separate branch that is both handled and possessed by an elected group of shareholders. These individuals have limited liability in connection with a corporation, and therefore are not held responsible for the pits, falls, and debts of a corporation. Shareholders must give an account to the state attorney of all financial modi operandi. In order to qualify for C Corporations, the corporation must follow these formalities:
- Adequate investment of money (capitalization) in the corporation.
- Formal issue of stocks to the initial shareholders.
- Regular meetings of directors, and the shareholders.
- Upkeep and update of business records and transactions of a corporation separate from those of its owners.