Our Houston Lawyers Can Help Form A Corporation
If you're considering organizing your business as a corporation, you probably have big dreams. In order to achieve those goals, you need to create a firm foundation for your business venture. That's where experienced legal help can make a massive difference. That's why you need the business lawyers at Brewer & Pritchard, P.C.
Advantages and disadvantages of incorporating as a C corporation
C corporations are the most common type of corporation in the United States. There are significant advantages and disadvantages that come with this type of business organization. Some of the advantages of a C corporation, include:
- Limited liability for directors, officers and shareholders. Your personal assets are protected.
- Durable existence. A corporation, unlike an LLC or partnership, continues to exist even if the owner leaves the company.
- Substantial growth potential. There is no limit to the number of shareholders, which means your company can continue to grow.
- Some tax advantages, such as deductible business expenses. How significant these will prove to be depends on the size and nature of your business.
As with any type of business, there are also drawbacks. An experienced business law attorney can help you understand how these disadvantages will affect your business. We may be able to help mitigate or offset those disadvantages, or even recommend a different type of corporate structure, depending on your circumstances. We can assist your company with all the legal aspects often associated with the following issues:
- Start-up expenses - Filing articles of incorporation can be expensive. You will need to pay fees to the State of Texas.
- Significant regulation - C corporations have substantially more government oversight than other types of companies. Ensuring compliance is critical.
- Double taxation for shareholders - A C corporation's revenue is taxed at the company level and again at the shareholder level. Shareholders cannot deduct losses on their personal income tax returns.
If you're considering forming a C corporation or reorganizing an existing company, you need an experienced attorney on your side. We can help you avoid all legal issues down the road and organize your business in a manner that leaves you well-position to succeed. We can also explain all the advantages and disadvantages of forming an S Corporation and other business structures.
Find out what our attorneys can do for your business. Contact Brewer & Pritchard online or call (800) 445-8710.