There are certain C-Corp requirements to meet whether you want to start a corporation with one shareholder or dozens. It is certainly possible to apply for a C-Corporation EIN with multiple owners, and when forming a C-Corp in this manner, there are a few points to keep in mind.
Many business owners want to turn a business into a corporation due to the litany of tax benefits. Additionally, a corporation is viewed by the state and federal government as a separate entity that can help protect personal assets in the event of financial hardship.
Through incorporation, you agree to hold annual board of director and shareholder meetings. Someone needs to write down all of the meeting minutes, and the corporation needs to file an annual renewal with the secretary of state. When there are multiple owners present, everyone needs to be on the same page for when these shareholder meetings will take place.
Articles of Incorporation
When developing a C-Corp, you need to decide where the company will be headquartered. This may not necessarily be the state you personally reside in. Some business owners choose another state for tax purposes, but when there are several owners, then people may want the business to be headquartered where a majority of shareholders are located.
You need to provide the secretary of state with virtually all information related to your business. This includes the names of every shareholder and how many shares each person has. Additionally, with multiple owners, you need to decide who will hold the positions of secretary, president, and treasurer. However, people who are not shareholders could also hold these positions.
All your questions regarding incorporation, including “What is a c-corp?” are answered at GovDocFiling. With our help, you can apply for a federal EIN number. Let us know how we can best help you by sending in an online form.