Legal Forms of Ownerships for Small Businesses

As part of our legal forms of ownership for small businesses discussion, we recently discussed an overview of limited partnerships. Today, we are continuing this discussion with an overview of C corporations.

C corporations are the most common form of business entity in the United States. Below are pros and cons of c corps:

Pros:

1. A C corp exists perpetually

2. Unlimited amount of shareholders

3. Tax benefits, such as tax-deductible business expenses

4. Sale of stock leads to unlimited growth

Cons:

1. C corps are held to higher tax standards and regulations

2. Government filing fees can become costly

3. Shareholders are prohibited from deducting corporate losses on their personal tax returns

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*This blog post should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only.