Maine C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Maine, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a Maine C-Corp or Maine S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an ME S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
transporter

How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Maine business as a C-Corp?

The main difference between a Maine C-Corp and a Maine S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Maine. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting an ME C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Maine.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Just like Maine LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Maine requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Maine or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Maine Secretary of State corporation forms.

Generally speaking, a Registered Agent for a Maine corp must meet the following requirements:
  • Possess a physical street address located in Maine (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on Maine’s Secretary of State website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Maine Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Just like Maine LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Maine requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Maine, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Maine. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Maine Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Maine.

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Submit Your Articles of Incorporation

To create a C-Corp in Maine, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Maine.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Maine C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Maine. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Maine provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Maine law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Maine requirements state that there should be as many officers as stated in the bylaws, but a minimum of one. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Maine requires an annual shareholder meeting--unless directors are elected by written consent.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. Your Maine C-Corporation will need to pay income taxes to the state. Maine's corporate income tax varies, with rates ranging from 3.5% to 8.93%, depending on income.

Plus, some states charge the C-Corp other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Maine has a sales and use tax, as well as other taxes. Maine’s personal income tax rates currently range from 5.8% to 7.15%. For more specific rates, as well as more information on Maine taxes, visit the Maine Department of Administrative and Financial Services website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you most likely will need worker’s compensation, unemployment insurance, building permits, etc. More information on Maine licenses can be found here. Find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends.

File an Annual Report

Like most states, the State of Maine requires all C-Corp owners to file a yearly report that updates all the information that the Maine Secretary of State has on file. This report is typically called the Annual Report. It is due by June 1, along with a fee of $85, payable to the Maine Secretary of State. You can file online on the Maine Department of the Secretary of State Bureau of Corporations, Elections, and Commissions website. Filing an Annual Report is necessary for maintaining an active status after starting a C-Corp in Maine. Not filing the report or paying the fee will result in being presented a Maine corporation dissolution form, after which the state will dissolve your business.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Maine corporation fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Maine requires all C-Corp owners to file a yearly report that updates all the information that the Maine Secretary of State has on file. This report is typically called the Annual Report. It is due by June 1, along with a fee of $85, payable to the Maine Secretary of State.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Maine corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Maine C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Maine corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Maine business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Maine corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Maine you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Corporate Name Search Database. If you are not ready to file a C-Corp in Maine today but want to reserve a name in the meantime, you can do so by filling out the form (and paying a $20 fee) here. This puts a hold on the name for 120 days.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Maine has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Maine business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Maine corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your ME C-Corp might need—and you’re good to go! Begin operating your newly formed Maine business with peace of mind.

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Begin Operating Your Business

Once you become an official Maine corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Louisiana C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Louisiana, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a Louisiana C-Corp or Louisiana S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an LA S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
transporter

How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Louisiana business as a C-Corp?

The main difference between a Louisiana C-Corp and a Louisiana S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Louisiana. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting an LA C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Louisiana.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Just like Louisiana LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Louisiana requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Louisiana or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Louisiana Secretary of State corporation forms.

Generally speaking, a Registered Agent for a Louisiana corp must meet the following requirements:
  • Possess a physical street address located in Louisiana (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on Louisiana’s Secretary of State website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Louisiana Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Just like Louisiana LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Louisiana requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Louisiana, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Louisiana. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Louisiana Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Louisiana.

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Submit Your Articles of Incorporation

To create a C-Corp in Louisiana, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Louisiana.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Louisiana C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are required in most states, they are not required in Louisiana. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Louisiana provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Louisiana law requires as many directors as determined in the Articles of Incorporation or corporate bylaws. The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Louisiana requirements state that there should be a President, Secretary, and Treasurer on the Board of Directors. One person can be any two of these.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Louisiana requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. Your Louisiana C-Corporation will need to pay corporate income taxes. Louisiana’S-Corporate income tax varies, with rates ranging from 5.8% to 7.15%, depending on income. There is also a franchise tax in Louisiana, with the following rates:

  • 4% on the first $25,000 of net income
  • 5% on the next $25,000
  • 6% on the next $50,000
  • 7% on the next $100,000
  • 8% on the excess over $200,000

More information on the Louisiana franchise tax can be found on the Department of Revenue website. Plus, there are other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Louisiana has a sales and use tax, as well as other taxes. More tax info can be found here.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you most likely will need worker’s compensation, unemployment insurance, building permits, etc. The U.S. Small Business Administration (SBA) has a list of federal licenses and permits that you may need for your Louisiana C-Corp. Plus, the Louisiana Secretary of State offers a service called GeauxBiz which will help you determine if your business type needs any licenses and/or permits. Find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends.

File an Annual Report

Like most states, the State of Louisiana requires all C-Corp owners to file a yearly report that updates all of the information in the Louisiana Secretary of State LLC/corporation files. This report is called the Annual Report. It is due every year by your registration anniversary. Just like the Louisiana LLC cost, a fee of $30 (+$5 if you pay with a credit card), payable to the Louisiana Secretary of State, is due along with the report. You can file online on the Louisiana Secretary of State website, after creating an account. Filing an Annual Report is necessary for maintaining an active status after starting a C-Corporation in Louisiana. Not filing the report or paying the fee will result in being presented a Louisiana corporation dissolution form, after which the state will dissolve your business.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Louisiana corporation fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Louisiana requires all C-Corp owners to file a yearly report that updates all of the information in the Louisiana Secretary of State LLC/corporation files. This report is called the Annual Report. It is due every year by your registration anniversary.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Louisiana corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Louisiana C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Louisiana corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Louisiana business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Louisiana corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Louisiana you will need an original name that is not in use by another corporation. There is no way to check if a name has already been taken by using an online database search. A check must be made by phone at (225) 925-4704, by fax to (225) 932-5314, or by mail to P.O. Box 94125, Baton Rouge, LA 70804. If you are not ready to file a C-Corp in Louisiana today but want to reserve a name in the meantime, you can do so by contacting the Secretary of State with your request and paying a $25 fee. This puts a hold on the name for 120 days.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Louisiana has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Louisiana business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Louisiana corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your LA C-Corp might need—and you’re good to go! Begin operating your newly formed Louisiana business with peace of mind.

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Begin Operating Your Business

Once you become an official Louisiana corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Kentucky C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Kentucky, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a Kentucky C-Corp or Kentucky S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as a KY S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
transporter

How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Kentucky business as a C-Corp?

The main difference between a Kentucky C-Corp and a Kentucky S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Kentucky. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a KY C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Kentucky.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Just like Kentucky LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Kentucky requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Kentucky or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Kentucky Secretary of State corporation forms.

Generally speaking, a Registered Agent for a Kentucky corp must meet the following requirements:
  • Possess a physical street address located in Kentucky (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on Kentucky’s Secretary of State website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Kentucky Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Just like Kentucky LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Kentucky requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Kentucky, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Kentucky. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Kentucky Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Kentucky.

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Submit Your Articles of Incorporation

To create a C-Corp in Kentucky, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Kentucky.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Kentucky C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Kentucky. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Kentucky provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Kentucky law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Kentucky requirements state that there should be as many officers as stated in the bylaws, but a minimum of one. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Kentucky requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. The state of Kentucky does not have a corporate franchise tax. Instead, it has a Limited Liability Entity Tax (LLET) that every non-exempt corporation and pass-through entity doing business in Kentucky must pay. The LLET is based on a business’s annual gross receipts with a rate of $950 per $1 million of Kentucky gross receipts and $7,500 per $1 million of Kentucky gross profits. The minimum LLET is $175.

Plus, some states charge the C-Corp other various taxes. For example, Kentucky employers owe payroll tax on employees wages. Plus, Kentucky has a general sales tax at a rate of 6%. Local cities/counties do not have their own sales tax, unlike some states. Other business taxes can be found on the Kentucky Department of Revenue website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most Kentucky licenses and permits can be found here. Find out the requirements for C-Corps in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends.

File an Annual Report

Like most states, the State of Kentucky requires all C-Corporation owners to file a report that updates all the information that the Kentucky Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by June 30th.

Good news for prospective C-Corp owners in Kentucky: while some states charge over $500 as a required fee that all corporations must pay when submitting their Reports, Kentucky requires a fee of only $15 that owners need to pay when submitting their Annual Reports.

Kentucky C-Corp filing is available online on the Kentucky Secretary of State website. Filing an Annual Report is necessary for maintaining an active status after starting a C-Corp in KY. Not filing the report or paying the fee will result in being presented a Kentucky corporation dissolution form, after which the state will dissolve your business.

Annual Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Kentucky corporation fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Kentucky requires all C-Corporation owners to file a report that updates all the information that the Kentucky Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by June 30th.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Kentucky corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Kentucky C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Kentucky corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Kentucky business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Kentucky corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Kentucky you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Business Name Search Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Kentucky has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Kentucky business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Kentucky corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your KY C-Corp might need—and you’re good to go! Begin operating your newly formed Kentucky business with peace of mind.

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Begin Operating Your Business

Once you become an official Kentucky corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Kansas C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Kansas, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a Kansas C-Corp or Kansas S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as a KS S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Kansas business as a C-Corp?

The main difference between a Kansas C-Corp and a Kansas S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Kansas. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a KS C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Kansas.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Kansas requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Kansas or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Kansas Secretary of State corporation forms.

Generally speaking, a Registered Agent for a Kansas corp must meet the following requirements:
  • Possess a physical street address located in Kansas (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on Kansas’s Secretary of State website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Kansas Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Kansas requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Kansas, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Kansas. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Kansas Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Kansas.

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Submit Your Articles of Incorporation

To create a C-Corp in Kansas, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Kansas.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Kansas C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in most states, they are required in Kansas. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Kansas provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Kansas law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Kansas requirements state that there should be as many officers as stated in the bylaws, but a minimum of one. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Kansas requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. The company itself must file a separate tax return and pay Kansas corporate income tax. The corporate income tax in Kansas is a flat rate of 4% of federal taxable income (plus, a 3% surtax is charged on income larger than $50,000).

There are other taxes that a C-Corp must pay. For example, employers owe a withholding tax. Plus, Kansas has a sales tax. More information can be found on the Kansas Department of Revenue website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most Kansas licenses and permits can be found here. Find out the requirements for S-Corps in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends.

File an Annual Report

Like most states, the State of Kansas requires all C-Corps owners to file a report that updates all the information that the Kansas Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by the fifteenth day of the fourth month after the close of the fiscal year--usually April 15th--along with a fee of $50 ($55 for mailed printed forms).

Kansas Annual Report filing is available online on the Kansas Business Center website. Filing an Annual Report is necessary for maintaining an active status after starting a corporation in Kansas. Not filing the report or paying the fee will result in being presented a KS-Corp dissolution form, after which the state will dissolve your business.

Annual Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Kansas corporation fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Kansas requires all C-Corps owners to file a report that updates all the information that the Kansas Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by the fifteenth day of the fourth month after the close of the fiscal year--usually April 15th--along with a fee of $50 ($55 for mailed printed forms).

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Kansas corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Kansas C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Kansas corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Kansas business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Kansas corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Kansas you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Business Name Search Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Kansas has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Kansas business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Kansas corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your KS C-Corp might need—and you’re good to go! Begin operating your newly formed Kansas business with peace of mind.

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Begin Operating Your Business

Once you become an official Kansas corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Iowa C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Iowa, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a C or S-Corporation will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Iowa business as a C-Corp?

The main difference between a C-Corp and an S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to setting up your business as an Iowa C-Corp. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Iowa.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your Iowa C-Corp should be. The State of Iowa requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Iowa or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent for an Iowa corp must meet the following requirements:
  • Possess a physical street address located in Iowa (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Idaho’s corporation website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Iowa Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your Iowa C-Corp should be. The State of Iowa requires every C-Corporation in the state to have one.

Submit Your Articles
of Incorporation

To create a C-Corp in Iowa, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Iowa. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Iowa Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Iowa.

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Submit Your Articles of Incorporation

To create a C-Corp in Iowa, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Iowa.

Obtain an Employer
Identification Number

Next, your Iowa C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your Iowa C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Iowa. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Iowa provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Iowa law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as the Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Iowa requirements state that there should be as many officers as stated in the bylaws--but at least a minimum of one. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having an Iowa C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Iowa requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having an Iowa C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay taxes at the corporate level. They report and pay income taxes only on what they are paid by the corporation. A disadvantage is that they also may encounter double taxation if corporate income is distributed to business owners as dividends (these are are considered personal income). Tax on corporate income is paid first at the corporate level and again at the individual level on dividends. Iowa taxes corporation income at a series of marginal rates ranging from 6% to 12%.

There are also other various taxes. For example, Iowa has a sales and use tax rate of 6%, but this can change depending on local municipalities. The total tax rate can increase by 1%. The Iowa Department of Revenue has additional tax information.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most licenses can be found on the Iowa Business License Information Center’s website. A benefit to forming a C-Corp in Iowa is that the costs of obtaining worker’s compensation insurance as well as unemployment insurance in the state are among the cheapest in the country. Find out which additional requirements there may be for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay taxes at the corporate level. They report and pay income taxes only on what they are paid by the corporation.

File a Biennial Report

Like most states, the State of Iowa requires all C-Corp owners to file a report that updates all the information that the Iowa Secretary of State has on file. While most states require this report to be submitted annually for C-Corps, Iowa requires a submission biennially--each odd numbered year. The report is due on April 1st, along with a fee payable to the Iowa Secretary of State. For online filing, a fee of $45 is required. This goes up to $60 for forms that are printed and mailed. Online filing is available on the Iowa Secretary of State website. Filing a Biennial Report is necessary for maintaining an active status after starting a C-Corp in Iowa. Not filing the report or paying the fee will result in being presented an Iowa C-Corp dissolution form, after which the state will dissolve your business.

Biennial Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Iowa C-Corp fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File a Biennial Report

Like most states, the State of Iowa requires all C-Corp owners to file a report that updates all the information that the Iowa Secretary of State has on file. While most states require this report to be submitted annually for C-Corps, Iowa requires a submission biennially--each odd numbered year.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Iowa corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Iowa C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Iowa corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Iowa business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Iowa corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating a C-Corporation in the State of Iowa, you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Iowa Business Name Availability Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Iowa has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Iowa business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official C-Corporation in the state of Iowa, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your IA C-Corp might need—and you’re good to go! Begin operating your newly formed Iowa business with peace of mind.

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Begin Operating Your Business

Once you become an official C-Corporation in the state of Iowa, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Indiana C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Indiana, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a C or S-Corporation will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an IN S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Indiana business as a C-Corp?

The main difference between a C-Corp and an S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Indiana. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting an IN C-Corp One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-corporation is an excellent choice for many entrepreneurs looking to start a business in Indiana.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Indiana requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Indiana or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Indiana Secretary of State corporation forms.

Generally speaking, a Registered Agent for an Indiana corp must meet the following requirements:
  • Possess a physical street address located in Indiana (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Idaho’s corporation website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Indiana Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Indiana requires every C-Corporation in the state to have one.

Submit Your Articles
of Incorporation

To create a C-Corp in Indiana, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Indiana. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corporation during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Indiana Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Indiana.

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Submit Your Articles of Incorporation

To create a C-Corp in Indiana, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Indiana.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Indiana C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Indiana. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Indiana provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Indiana law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time. Indiana requirements state that there should be as many officers as stated in the bylaws, but a minimum of one. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Indiana requires an annual shareholder meeting, unless the directors are elected by written consent.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. Indiana’s corporate tax rates can be found here.

Plus, some states charge a C-Corporation other various taxes. For example, employers owe payroll tax on their employees’ wages. Also, most states have a retail sales tax that all businesses that sells products or services must pay. There is a detailed list of Indiana taxes, such as the retail tax, on the Indiana Department of Revenue website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation or unemployment insurance, both of which are explained on the Indiana Business Owner’s Guide. Find out the requirements for C-Corps in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends.

File a Biennial Business Entity Report

While most states require an Annual Report, one of the State of Indiana C-Corp requirements is that all C-Corp owners must file a report, not annually but biennially. In Indiana, this report is called a Business Entity Report. This report is due every other year on the anniversary month of your Indiana C-Corp’s formation, payable to the Indiana Department of Revenue. The Indiana Secretary of State typically notifies businesses ahead of time before the report is due, but you should also keep track of these dates or hire a service to do so for you. You can fill out and file the Business Entity Report on the Indiana Government website, or choose to mail it. The Indiana C-Corp filing fee is $30 for filing by mail and $22.44 when filing online. Filing this form is necessary for maintaining an active business status.

Biennial Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Indiana C-Corp fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File a Biennial Business Entity Report

While most states require an Annual Report, one of the State of Indiana C-Corp requirements is that all C-Corp owners must file a report, not annually but biennially. In Indiana, this report is called a Business Entity Report.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Indiana corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Indiana C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Indiana corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Indiana business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Indiana corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating a C-Corporation in the State of Indiana, you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Indiana Name Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Indiana has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Indiana business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Indiana corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your IN C-Corp might need—and you’re good to go! Begin operating your newly formed Indiana business with peace of mind.

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Begin Operating Your Business

Once you become an official Indiana corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Illinois C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Illinois, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a C or S-Corporation will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Illinois business as a C-Corp?

The main difference between a C-Corp and an S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to setting up your business as an Illinois C-Corp. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to incorporate in Illinois.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Illinois requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Illinois or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent must meet the following requirements:
  • Possess a physical street address located in Illinois (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Illinois’s corporation website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Illinois Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Illinois requires every C-Corporation in the state to have one.

Submit Your Articles
of Incorporation

To create a C-Corp in Illinois, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Illinois. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors. You can read the guidelines on the Illinois state website.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

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Submit Your Articles of Incorporation

To create a C-Corp in Illinois, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Illinois.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are required in some states, they are not required in Illinois. Nevertheless, is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Illinois provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be.

Elect a Board of Directors

Illinois law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Illinois requirements state that there should be a minimum of one officer in all corporations--or as stated in the bylaws. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having an Illinois C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. An annual shareholder meeting is required in Illinois.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

C-Corporations established in Illinois need to pay the following taxes:

  • Corporate income tax
  • Personal property replacement tax (based on a business’s net income)
  • Corporation franchise tax (if income from your business passes through to you personally, that income will be taxed on your personal Illinois tax return)
  • Annual franchise tax, which is a tax on the privilege of having an Illinois corporation.
  • Possibly more--use the Illinois Tax Rate Database to determine additional taxes.

The state of Illinois corporation law imposes a separate state tax directly on C-Corps, which is called a personal property replacement tax. The tax is payable to the Illinois Department of Revenue (IDOR). For more details on personal property replacement tax, see the Illinois Department of Revenue website.

There are additional taxes businesses in Illinois might be obligated to pay. For example, if your business sells goods or products, you will have to pay a sales tax, which currently is at a rate of 6.3%. Plus, if your C-Corp has employees, you'll need to pay employer taxes.

In addition to taxes, certain states have extra fees for certain insurances, permits, and licenses.

The Illinois Department of Financial and Professional Regulation (IDFPR) requires individuals to be licensed before offering their services if they hold one of these listed professions. Additional licenses and permits are listed on the Illinois government website. Furthermore, you may need worker’s compensation insurance or various permits permit, depending on the state’s laws and the type of business you own.

Find out the requirements for C-Corporations in Illinois, keeping in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

C-Corporations established in Illinois need to pay the following taxes:

  • Corporate income tax
  • Personal property replacement tax (based on a business’s net income)
  • Corporation franchise tax (if income from your business passes through to you personally, that income will be taxed on your personal Illinois tax return)
  • Annual franchise tax, which is a tax on the privilege of having an Illinois corporation.
  • Possibly more--use the Illinois Tax Rate Database to determine additional taxes.

File a Corporation Annual Report

Illinois law requires all businesses to update the records of the Illinois Secretary of State every year. The State of Illinois wants all corporations to file an annual report, which is called a Corporation Annual Report in the state. This report asks some information on your corporation, particularly regarding any necessary updates that were made during the past year. Each Corporation Annual Report is due prior to the first day of the registration anniversary month (so if you incorporated on April 14, your report is due on March 31). A fee payable to the Illinois Secretary of State is required as well--$75 for mailed in forms and a $50 expedite fee for online submissions. Corporations must also pay a minimum of $25 as a franchise tax. You can file here. Keep in mind that all of the information you put on the form is accessible to the public on the Secretary of State’s website.

The report can be rather complex– sometimes requiring the deciphering of gross receipts, dividends, interest, losses, etc.–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File a Corporation Annual Report

Illinois law requires all businesses to update the records of the Illinois Secretary of State every year. The State of Illinois wants all corporations to file an annual report, which is called a Corporation Annual Report in the state.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-Corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of the C-Corp.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Illinois business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Illinois corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating an S-Corporation in the State of Illinois, you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search on the Illinois Secretary of State’s website. You have the option to search there, or email or call. Additionally, you can reserve a name if you fill out the Name Reservation form and submit it.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Illinois has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Illinois business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official C-Corporation in the state of Illinois, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your IL C-Corp might need—and you’re good to go! Begin operating your newly formed Illinois business with peace of mind.

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Begin Operating Your Business

Once you become an official C-Corporation in the state of Illinois, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Idaho C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Idaho, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as an Idaho C-Corp or Idaho S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an ID S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Idaho business as a C-Corp?

The main difference between an Idaho C-Corp and an Idaho S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Idaho. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting an ID C-Corp One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-corporation is an excellent choice for many entrepreneurs looking to start a business in Idaho.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Idaho requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Idaho or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Idaho Secretary of State corporation forms.

Generally speaking, a Registered Agent for an Idaho corp must meet the following requirements:
  • Possess a physical street address located in Idaho (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Idaho’s corporation website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Idaho Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Idaho requires every C-Corporation in the state to have one.

Submit Your Articles
of Incorporation

To create a C-Corp in Idaho, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Idaho. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corporation during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Idaho Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Idaho.

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Submit Your Articles of Incorporation

To create a C-Corp in Idaho, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Idaho.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Idaho C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in most states, they are required in Idaho. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Idaho provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Idaho law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time. Idaho requirements state that there should be as many officers as stated in the bylaws. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Idaho requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends.

Like most other states, Idaho taxes corporation income. In Idaho, corporation income is taxed at a flat 7.4% rate, plus a minimum corporation tax of $20, and a $10 excise tax. In contrast, Idaho personal income tax rates range from 1.6% to 7.4% depending on income, plus a $10 excise tax. For any possible changes to tax rates, visit the Idaho State Tax Commission website. According to this same website, the current Idaho business tax rate is 6.925% of taxable income. Both C and S-Corps owe a minimum income tax of $20.

Good news for small businesses just starting out: Idaho permits business owners to pay an alternative tax of 1% of gross sales if they do not own property, have no payroll/employees, and their gross sales in the state of Idaho do not exceed $100,000.

There may be extra fees for certain insurances, permits, and licenses. For instance, if your Idaho C-Corp has employees, you will have to register for the Unemployment Insurance Tax through the Idaho Department of Labor. Plus, if you are selling a product, you’ll need a sellers permit, obtained from the Idaho State Tax Commission website, Find out the requirements for C-Corps in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends.

File an Annual Report

While you are setting up a C-Corp in Idaho, you should familiarize yourself with all yearly maintenance tasks, such as the Annual Report. Good news for prospective Idaho C-Corp owners: An advantage that Idaho business owners have is not needing to pay an Annual Report processing fee, as there is no state fee required when submitting your Annual Report. It is due to the Idaho Secretary of State (SOS) by the end of your C-Corp’s anniversary month, or by the last day of the month the company was originally filed in. Meaning, if your company was registered on August 13th, your Annual Report will be due every August 31st. It is recommended that you file your report online using the Secretary of State’s Online Business Services Website.

Filing an Annual Report is necessary for maintaining an active status after starting a corporation in Idaho. Not filing the report or paying the fee will result in being presented an Idaho corporation dissolution form, after which the state will dissolve your business.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and Idaho C-Corp fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

While you are setting up a C-Corp in Idaho, you should familiarize yourself with all yearly maintenance tasks, such as the Annual Report. Good news for prospective Idaho C-Corp owners: An advantage that Idaho business owners have is not needing to pay an Annual Report processing fee, as there is no state fee required when submitting your Annual Report.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Idaho corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Idaho C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Idaho corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Idaho business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Idaho corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Idaho you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Idaho Name Availability Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Idaho has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Idaho business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Idaho corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your ID C-Corp might need—and you’re good to go! Begin operating your newly formed Idaho business with peace of mind.

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Begin Operating Your Business

Once you become an official Idaho corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Hawaii C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Hawaii, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a Hawaii C-Corp or Hawaii S-Corp will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as a HI S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
transporter

How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Hawaii business as a C-Corp?

The main difference between a Hawaii C-Corp and a Hawaii S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to establishing a C-Corp in Hawaii. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a HI C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Hawaii.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Just like Hawaii LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Hawaii requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Department of Commerce and Consumer Affairs office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Hawaii or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. Your Registered Agent’s information would go on your most important Hawaii Department of Commerce and Consumer AffairS-Corporation forms.

Generally speaking, a Registered Agent for a Hawaii corp must meet the following requirements:
  • Possess a physical street address located in Hawaii (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on Hawaii’s Department of Commerce and Consumer Affairs website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Hawaii Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Just like Hawaii LLC formation process, you will need to figure out who the Registered Agent for your C-Corp should be. The State of Hawaii requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Hawaii, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Hawaii. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Hawaii Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Hawaii.

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Submit Your Articles of Incorporation

To create a C-Corp in Hawaii, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Hawaii.

Obtain an Employer
Identification Number

Part of the Hawaii corporation formation process is filing with IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your Hawaii C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Part of the Hawaii corporation formation process is filing with IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Hawaii. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Hawaii provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Hawaii law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Like most states, Hawaii requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends. Often, they end up encountering double taxation if corporate income is distributed to business owners as dividends. Your Hawaii C-Corporation will need to pay a corporate income tax. There is a corporate income tax in Hawaii with rates that range from 4.4% to 6.4%.

There are other various taxes a C-Corp must also pay. For example, if you have employees, you will have to pay a withholding tax. Plus, if your business sells goods or services, you will have to pay an additional tax. While Hawaii doesn't have a sales tax, it does impose the general excise tax (GET). The GET is 4% throughout most of Hawaii, 4.5% on Oahu, and can be up to 4.72% in other areas.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most Hawaii permits and licenses can be found on the Department of Commerce and Consumer Affairs (DCCA) website. Find out the requirements for C-Corps in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

A traditional C-Corporation is taxed as a separate entity and must report any profits or losses on a corporate tax return. C-Corps pay tax on corporate income paid first at the corporate level and again at the individual level on dividends.

File an Annual Report

Like most states, the State of Hawaii requires all C-Corp owners to file a report that updates all the information that the Department of Commerce and Consumer Affairs (DCCA) Business Registration Division has on file, along with a fee of $15, just like the Annual Report Hawaii LLC cost. Annual Reports must be filed during the quarter within which is the registration date of the Hawaii C-Corp. Quarter 1’s due date was March 31, Quarter 2’s due date is June 30, Quarter 3’s due date is September 30, and Quarter 4’s due date is December 31. Explanations of Quarters 1-4 as well as online filing options are both available on the DCCA Business Registration Division website.

Filing an Annual Report is necessary for maintaining an active status after starting a C-Corp in Hawaii. Not filing the report or paying the fee will result in being presented a Hawaii corporation dissolution form, after which the state will dissolve your business.

Annual Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Hawaii corporation fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Hawaii requires all C-Corp owners to file a report that updates all the information that the Department of Commerce and Consumer Affairs (DCCA) Business Registration Division has on file, along with a fee of $15, just like the Annual Report Hawaii LLC cost.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Hawaii corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Hawaii C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Hawaii corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Hawaii business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Hawaii corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting a C-Corp in Hawaii you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Business Name Search Database. If you are not ready to register a C-Corp in Hawaii today but want to reserve a name to ensure that it is not taken, you can reserve the name for a period of 120 days.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Hawaii has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Hawaii business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official Hawaii corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your HI C-Corp might need—and you’re good to go! Begin operating your newly formed Hawaii business with peace of mind.

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Begin Operating Your Business

Once you become an official Hawaii corporation, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.


Georgia C-Corp

Learn the Benefits of an C-Corp

When you decide to start a business in Georgia, there are a number of business entities to choose from. Each has its own advantages and disadvantages, which we will introduce to you here. Prospective business owners should consult with professionals, such as a business attorney and accountants, before making the final decision. But educating yourself about the different types of corporations can help you assess what is the right business structure for you beforehand.

But first, are you ready to incorporate? It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Typically, “material size” means a business with revenue above $100,000. Once you know you’re ready, you have the option between choosing to classify your business as a C-corporation or an S-Corporation. While S-Corps used to be the way to go for small businesses, thanks to the 2017 Tax Cuts and Jobs Act, C-corps are now often recommended for smaller businesses due to lower corporate tax rates. Now, S-Corps are sometimes advisable for larger businesses. But keep in mind that C-corps give you more options to expand and raise money, which can be very beneficial to a larger business. You may want to discuss the differences with a financial advisor or lawyer who can help break down all of the costs to help you assess what will work best for you.

Whether you choose to structure your business entity as a C or S-Corporation will determine how much you’ll pay in taxes, the ways you’re permitted to raise money, and the ease with which you can expand as your business grows. The standard and most common type of corporation is a C-Corporation. In fact, a C-Corp is the default type of corporation. When you initially incorporate, your company will become a standard C-Corp, and only after you file the necessary forms can you be classified as an S-Corp for federal tax purposes.

Why is an C-Corp a good idea for an e-commerce Business?

If there is an issue with a product, an C-Corp protects you. Compensation can only be taken from the C-Corp’s assets, not your personal assets.

Start Your C-Corp Now
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How do you know which type of corporation you want to register your business as when they are both so similar? Both types of corporations offer owners protection from individual liability, so shareholders (and directors, officers, and employees) are typically not personally responsible for business debts. C-Corps and S-Corps require similar paperwork. In addition, both are owned by shareholders, have a Board of Directors with annual meetings, and are managed by executive officers. It is also a requirement that both types of corporations pay annual fees, set up bylaws, and issue stock. Basically, an S-Corporation is the legal equivalent of a regular C-Corporation. Both have the same rights. They just pays taxes differently.

But why opt for a C-Corp? What are the benefits of setting up your Georgia business as a C-Corp?

The main difference between a C-Corp and an S-Corp is that a C-Corporation is a legal entity whose profits are taxed separately (under subchapter C of the Internal Revenue Code). The corporation’s profits will be taxed at the entity level and then again at the personal level if it’s distributed as shareholder dividends.

There are advantages to setting up a Georgia C-Corp. Registering as a C-Corporation offers you:

  • No restrictions on ownership. C-corporations can be owned by any other legal entity, foreign or domestic. Plus, the company can continue to exist even if the owner leaves the company.
  • The opportunity to issue shares of stock to increase the value of your business. Unlike an S-Corp that permits only 100 shareholders, there is no limit for C-corps. Additionally, a C-Corp has no limits on who or what can be a shareholder (meaning other businesses can be shareholders).
  • Multiple classes of stock, while S-Corporations can only have one class of stock.
  • A low 15% corporate income tax on the first $50,000 of income that your C-corporation brings in.
  • The ability to reinvest profits in your corporation at a lower tax rate.
  • More potential customers if you one day decide to sell your C-Corp. C-corps can be owned by other corporations, LLCs, or trusts, while an S-Corp can’t be owned by a C-Corp, other S-Corps, LLCs, general partnerships, or most trusts.
  • Tax-deductible business expenses such as medical reimbursement plans and premiums for health, long-term care and disability insurance (as long as the fringe benefits are equally available to all employees), while S-Corps do not. Individual shareholders in S-Corps can deduct their expenses from their income but at the same time have to declare these same benefits as income.
  • Rewards if your C-Corp donates to charity, as C-corporations are the only type of business entity that can deduct 100% of charitable contributions, as long as the donation doesn’t exceed 10% of the business’s total income.
  • The convenience of borrowing money from the C-corporation by using promissory notes.
  • A little more flexibility when starting a business. It will be easier to grow the business, expand the ownership, or sell your corporation.
  • Corporate status, which means shareholders, directors, and officers are protected from sharing liability as long as there is no evidence of fraud or other misdeeds.

But there are a few disadvantages to starting a C-Corp. One of those is double taxation, as revenue is taxed at the company level and again as shareholder dividends. Additionally, shareholders can't deduct losses on their personal tax returns. But overall, the benefits far outweigh the setbacks, and a C-Corporation is an excellent choice for many entrepreneurs looking to start a business in Georgia.

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Learn the Benefits of an C-Corp

Educating yourself about the different types of corporations can help you assess what is the right business structure for you. It is advised that you should incorporate when you anticipate taking investments or when your business approaches material size or complexity.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Georgia requires every C-Corporation in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your C-Corp and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Georgia or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent for a Georgia corp must meet the following requirements:
  • Possess a physical street address located in Georgia (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Georgia’s corporation website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring an Georgia Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for your C-Corp should be. The State of Georgia requires every C-Corporation in the state to have one.

Submit Your Certificate
of Formation

To create a C-Corp in Georgia, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Georgia. It establishes the basic elements of the corporation, such as the name and address of the corporation, the number and classes of stock, and certain indemnification provisions. Prior to filing, the Articles of Incorporation must be signed by each incorporator in order to authenticate it. The document can be repealed or amended with the approval of the Board of Directors.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for a C-Corp during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Georgia Articles of Incorporation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Georgia.

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Submit Your Articles of Incorporation

To create a C-Corp in Georgia, you will also need to register your business by filling out and submitting the Articles of Incorporation. The Articles of Incorporation is a form that should be filed (and maintained) with the state of Georgia.

Obtain an Employer
Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including apply for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

If you know your C-Corp will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Obtain an Employer Identification Number

Next, your C-Corp will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. All corporations require an EIN, even if you don’t have any employees.

Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-corporation. Basically, bylaws are rules of operation that create the company’s structure, ensuring that employees, shareholders, and executives are in the loop about how the business will be run.

Key points are covered in the corporate bylaws document, such as when annual meetings will be held, the size of your Board of Directors, and how this form will be amended if need be. In addition, member duties are explained and solutions to common disputes between parties are offered. Voting rights and salaries are discussed, and “what if” scenarios are presented. Having bylaws allows you to set up a structure that works for your business’s unique needs instead of adhering to default regulations within the state.

While bylaws are not required in some states, they are required in Georgia. It is important to establish a set of bylaws that ensure your business runs smoothly. Filling out and filing this document prior to starting a C-Corporation in Georgia provides protection for your business.

You can use this corporate bylaws generator to get a sense of what goes into a typical set of bylaws. To ensure it is done correctly, you can have a lawyer look over your bylaws prior to submission to ensure all necessary rules and scenarios are covered. Get legal advice from our partner Rocket Lawyer.

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Draft Your Corporate Bylaws

First, what are bylaws? If you’ve heard of an Operating Agreement, this is just like that, but “bylaws” is the term usually used when referring to a corporation. There is no set criteria for what your bylaws should look like, but typically, they should set forth internal rules and procedures for your C-Corporation.

Elect a Board of Directors

Georgia law requires one or more director(s). The Board of Directors, while they are not involved in the daily tasks of running a business, represent or govern the corporation. Their duties include handling finances and fulfilling legal requirements, as well as determining the mission of the company.

People who do not work for your company can be a part of your Board of Directors. In fact, many businesses turn to lawyers or other business owners to fill in a spot on their Board of Directors. That way, they receive outside expertise from them, plus they may come with their own additional business contacts.

These board members must adhere to something called “the duty of loyalty,” which means that directors and officers of a C-corporation can only make decisions without any personal economic conflict. The duty of loyalty is breached if something like a self-interested transaction occurs or a business opportunity is stolen. Plus, there is also the “duty of care” to consider. Members of the Board of Directors must make decisions that are in the best interests of the corporation at all times. For example, making a decision that causes serious losses for the shareholders would mean they are in violation of their duty of care--and they can be sued for this.

Your board members will have to hold meetings to make important decisions, such as issuing shares or amending something in the Articles of Incorporation. The Board of Directors typically receives equal voting rights (some states, like Delaware, are an exception) when making these decisions. During the first meeting of the C-corporation's Board of Directors, directors can appoint officers, decide on bylaws, select a corporate bank, and more. All subsequent meetings must be held annually, though, of course, if more are needed, more can be held.

Minutes of the meeting, which is the recorded documentation of what was discussed or what happened during a meeting, must be recorded to exhibit transparency in business operations, but they do not need to be filed with the state. Instead, these should be kept with your other corporate records, such as Articles of Incorporation and bylaws. These documents should be saved for at least seven years in order to protect your company.

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Elect a Board of Directors

First, familiarize yourself with the roles within a C-Corporation. There are three groups:

  • Shareholders
  • Board of Directors
  • Officers

Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything--if there are multiple shareholders and directors. If a corporation has only one shareholder or director, the decision-making, of course, falls on that person without the need for a group meeting. Officers, on the other hand, do not operate in groups. An officer holding the position of president, chief executive officer, or treasurer, for example, is an agent of the corporation and has the authority to act on behalf of the corporation on his or her own. Within smaller C-corps, directors are sometimes also officers and shareholders. In that case, even though the same person is serving in multiple roles, each role has very different responsibilities and is treated as such.

Shareholders are the owners of the corporation, and they elect the Board of Directors. The directors, in unison, oversee and direct corporation affairs and make business decisions. They employ officers who carry out the Board of Directors’ decisions. Officers are responsible for the day-to-day operations of the company. An officer can be terminated by the Board of Directors at any time.

Georgia requirements state that there should be as many officers as stated in the bylaws. One person may hold multiple offices. If there are multiple officers, one officer is responsible for maintaining all corporate records.

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Appoint Corporate Officers

Shareholders and directors only have the ability to make decisions as part of a group, after holding group meetings and taking votes. An individual shareholder or director does not have the power to do anything - if there are multiple shareholders and directors.

Issue Stock to your Shareholders

One of the benefits of having a C-corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt. Unlike taking out a business loan, you do not pay interest that eats at your profits each month. The value of your business assets can be assessed by taking a look at what amount of your business assets are owned by shareholders vs. lenders. Corporations that have a higher proportion of the company owned by lenders makes an investment in the business appear riskier. If shareholders do invest in your business and purchase stock, keep in mind that if your business fails, you would have to pay back your loans and shareholders.

While there are many advantages to issuing stock, keep in mind that shareholders have an ownership stake in the company. This means that they have certain rights, such as the ability to participate in voting and the assurance that they will be collecting dividends. Profits will be shared and decisions will have to be made in unison. The more stock you issue to shareholders, the smaller your ownership in the business (and the less of a say you have in business major business decisions). On the plus side, when your business grows, you can buy out the other shareholders and get your ownership back.

Issuing stock is not a requirement for C-corporations, but a privilege that you can make use of if you choose. Doing so can help you fund your business if you are growing and have large, expensive projects planned in the near future. In that case, you can decide how much capital you need and figure out how many shares you’d like to issue and at what price per share. You will already have a number for how many shares you have to offer (that was decided when you filed your Articles of Incorporation). To properly assess the accurate value of each share, determine your company’s net worth first. This will help you figure out what percentage of ownership you believe each share is worth. The appointed Board of Directors can issue stock whenever and to whomever, as long as the recipient has a brokerage account and is over 18 years old.

C-Corp shareholders have the option between different levels of stock which offer them varying levels of influence within the company. The stock classes are:

  • common stock
  • preferred stock
  • income stock
  • value stock
  • growth stock

The one thing that can limit you here is if you’ve chosen to classify your C-Corp as a private corporation. This is typically a smaller corporation where the stock isn't offered to the public. A publiC-corporation is authorized to sell their stock to the public, while a private company can’t trade its share on public stock exchanges. But a private corporation is not always small. Many big companies are privately held--such as Dell, Koch Industries, Deloitte, and Cargill. It can be harder for private corporations to raise funds, but it can be important in order to maintain family ownership.

Whoever your corporation may sell stock to, it’s important to have a shareholder agreement for protection. This would explain the shareholder’s rights and voting power within the C-corporation. You will want to decide and let you shareholders know what kind of say they have in the organization or management of the company when they are issued stock.

The best part? C-Corporations have no shareholder limit. Only when the company reaches $10 million in assets and 500 shareholders, there is an additional requirement that involves registering with the SEC under the Securities Exchange Act of 1934. The Securities Act of 1933 and The Securities Exchange Act of 1934 are federal securities laws that you must be in compliance with when issuing shares. These laws can be complex and detailed for a new business owner, and you may want to involve a lawyer if you are planning to issue corporate stock. Georgia requires an annual shareholder meeting.

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Issue Stock to your Shareholders

One of the benefits of having a C-Corporation is being able to issue shares of stock to raise funds for your business. Shares represent the amount of money invested by the shareholders in the company. Issuing stock to your shareholders allows you to finance your business without relying on debt.

Familiarize Yourself with the
State’s Taxes and Permits

Georgia has a corporate income tax of 5.75% of a C-Corporation's Georgia taxable net income. C-Corporations may also have to pay a net worth tax that is based on the net worth of the corporation. A corporation with a net worth of $100,000 or less does not pay the tax but must still file a return. Some states also charge other various taxes. For example, employers owe payroll tax on their employees’ wages. Additionally, Georgia has a sales and use tax, as well as other taxes. A list of the taxes a Georgia C-Corp may have to pay can be found on the Georgia Department of Revenue website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you most likely will need worker’s compensation, unemployment insurance, building permits, etc. Use the drop down menu on the Georgia Secretary of State’s website to see if your business may need a specific license. Plus, find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

Georgia has a corporate income tax of 5.75% of a C-Corporation's Georgia taxable net income. C-Corporations may also have to pay a net worth tax that is based on the net worth of the corporation.

File an Annual Registration

Georgia C-Corp owners are required to submit a report that updates all the information that the GA Secretary of State has on file. This report is typically called the Annual Report, but in Georgia, it is called the Annual Registration. It is due by April 1, but can be filed as early as January 1. It must be accompanied with a processing fee of $50. Online filing for Annual Registrations is available here.

Filing an Annual Registration is necessary for maintaining an active status after you start a C-Corp in Georgia. Not filing the report or paying the fee will result in being presented a Georgia corporation dissolution form, after which the state will dissolve your business.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Georgia C-Corp fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Registration

Georgia C-Corp owners are required to submit a report that updates all the information that the GA Secretary of State has on file. This report is typically called the Annual Report, but in Georgia, it is called the Annual Registration.

Raise Funds for Your Corporation

You can’t start a business with zero capital. There are legal fees, Georgia corp document filing fees, taxes, employees to pay, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your C-Corp are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Issuing stock to shareholders
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Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

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Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

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Conventional Bank Loan

C-Corp members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new C-corporation owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.


Lastly, you can invite people to your team. C-corporations may have a single person as the company's owner, or an unlimited number of shareholders participating in the ownership of the business. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your bylaws and ensure that you are still the primary owner of your Georgia C-Corporation.

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Raise Funds for Your C-Corp

You can’t start a business with zero capital. There are legal fees, Georgia corp document filing fees, taxes, employees to pay, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Georgia business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start C-Corp formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

The Benefits of Having an Online Presence
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You will show your customers that you are a legitimate business and build trust.
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Your company will be easy to correspond with and you can provide good, responsive customer service.
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Your customers will be kept up-to-date on all exciting news related to your business.


If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Georgia corporation name tips:

  • Follow C-Corp naming guidelines. A corporation’s name usually has to include words, like Corporation, Incorporated, Company, or Limited; or abbreviations, like Corp., Inc., Co., or Ltd. It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating a C-Corporation in the State of Georgia, you will need an original name that is not in use by another corporation. To check if a name has already been taken, you can search the Business Name Search Database. If you aren’t ready to register a Georgia C-Corp today, you can reserve your business name for 30 days. All you would need to do is pay $25 to the Georgia Secretary of State and make the request online or by mail. Instructions for the process of a Georgia corporation name reservation are here.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Georgia has a corporation with the same name. In that case, think of something more original.
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Create a Business Website

Creating a website for your Georgia business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an official C-Corporation in the state of Georgia, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings. This is mandatory if you don’t want your new business to run into any issues. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary permits, licenses, and insurances that your GA C-Corp might need—and you’re good to go! Begin operating your newly formed Georgia business with peace of mind.

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Begin Operating Your Business

Once you become an official C-Corporation in the state of Georgia, make sure you keep your C-Corp compliant. Remember all important dates and make all necessary payments on time. Know all of the laws regarding the issuing of stocks. Host all necessary annual meetings.