How to Establish a C Corporation
A "C" corporation is the "default" form of corporate structure. The "C" refers to the subchapter section of the Internal Revenue Service that refers to how corporations are taxed. C corporations vary from S corporations, for instance, because C corporations must pay taxes on profits made by the corporation and S corporations do not. Forming a C corporation requires following the relevant state laws concerning businesses. This typically means filing the articles of incorporation and adhering to certain corporate formalities.
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Instructions
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1
Choose a business name. State law requires corporate names to contain a suffix such as "Incorporated," "Company" or an abbreviation such as "Inc."
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2
Draft a set of bylaws. The bylaws describe how your corporation operates. Sections include provisions for how to elect directors, the duties of the corporate officers such as the president and treasurer and when and how to hold meetings.
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3
File articles of incorporation with the state's business corporations division, often the secretary of state. State-specific forms are available at secretary of state offices and on state websites. The forms require you to list the name of the corporation, the purpose of the business, the address of the business and the names of the incorporators. Fees must be paid; they vary from state to state.
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Distribute shares to the shareholders. Hold a shareholder meeting to elect the board of directors.
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Apply for any state- and business-specific licenses and permits needed to operate your business.
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