When I started a company and knew

[sumaiyakhatun26]

C corp is what most people think of when they hear the word ‘corporation.’ Most large companies are filed under this structure, as it offers the most asset protection and tax-related options for business owners. It is also typically the only choice for owners who would like to be taxed separately from their company, is the legal entity preferred by nearly all investors, and is the most common structure for publicly traded companies on the stock exchanges.

I would need investor capital, I have always used the C Corp structure. It eliminates friction with potential investors and ensures that you already have the required structure to bring on investor financing. The alternative often requires you to change your existing structure from an LLC to a C Corp before investors will fund your venture.

But, a C corp structure isn’t the best choice for everyone. Filing as a C corp requires more laos rcs data paperwork and formal processes that must be carefully and regularly filed. C corps are often also more closely monitored than other types of businesses because they are one of two types of corporations that can issue stock to the public.

If you choose to form a C Corp, be sure that your state of formation is business-friendly and has a strong reputation for quick filings. I’ve had situations where transactions required same-day filing and confirmation, and they would have been a nightmare had we not incorporated in Delaware. This is one reason Delaware remains the most popular state in the U.S. to form a corporation.