Corporations
There are several types of corporations to choose from. The choice depends on your goals, structure, and your industry requirements.
Corporation
- A corporation is a separate entity from the shareholders (owners).
- It is formed by filing the Articles of Incorporation with the Secretary of State.
- Shareholders are not personally liable for the debts of the corporation.
- Their liability is limited to the amount invested or rather the amount of their shares.
- Shareholders appoint the Board of Directors.
- The Board of Directors hire C-suite executives to run the day-to-day operations of the corporation.
- In a corporation with a small number of shareholders, they fullfill all of the roles.
Closely Held Corporation
- A corporation can also be known as a “closely held corporation.”
- There a limited number of shareholders (in California it is limited to only 35 shareholders) in a closely held corporation.
S-Corporation or Subchapter S Corporation
- An S-Corporation is a corporation that is designated a
“Small Business Corporation” by the Internal Revenue Service. - “Pass Through” taxation or the shareholders (as opposed to the corporation) are taxed on the profits and losses of the business.
- Can only have one hundred (100) shareholders
- Must be U.S. Citizens or Resident Aliens to be a shareholder.
Professional Corporation
- A professional corporation (PC) is owned by shareholders who are members of a profession (e.g., doctors, lawyers, or accountants).
- A PC is only allowed to have one type of share.
Non-Profit Corporation (501(c)(3))
- A non-profit corporation is designated “non-profit” by the Internal Revenue Service.
- Tax-exempt
- Must meet stringent IRS reporting requirements
NOTICE: The information on this website does not constitute legal advice and you should not rely on any information without seeking the advice of a competent attorney licensed to practice in your jurisdiction. This web site is both a communication and/or solicitation as defined by California Rules of Professional Conduct, rule 1-400. For further information, please click here.
Corporations
Transferable Limited Liability Protection Difficult to Start and Maintain Possible Investors

Business Planning Articles

Number One Way to Hire the Right Employee
Your business needs the right employee, but where do you start? In this video, we go through the best strategy to make sure your business

5 Biggest Myths About The Trademark Registration Process
There is a lot of misinformation on the internet about trademarks. In this video, we discuss the trademark registration process myths and what they mean

Before You Give An Employee A Raise…WATCH THIS!
Are you finally in a place to give that long-overdue raise to that rockstar employee? Before you do, make sure to watch this video. Giving

10 Secrets to Getting More Out of Your Business
Are you struggling to get more out of your business? Maybe you’re not making enough money, or you’re not being able to get the results

5 Ways to Make Your Business Look Better
In this video, I will show you five easy ways to make your business look better and make more money! As a business owner, one

5 Tips for Managing Conflict at Work
In this video, we’ll provide 5 simple tips for managing conflict at work. Conflict can be a common challenge in the workplace, but with the