This applies to directors, officers, shareholders, and employees.
Perpetual Existence
Even if the owner leaves the company.
Credibility
Gain respect among suppliers and lenders.
Unlimited Growth Potential
Unlimited growth potential with the sale of stocks.
No Shareholders Limit
However, once the company has $10 million in assets and 500 shareholders, it must register with the SEC under the Securities Exchange Act of 1934.
Certain Tax Advantages
Tax-deductible business expenses.
DISADVANTAGES
Double Taxation
Revenue is taxed as profits are made and taxed again as shareholder dividends.
Expensive Startup
There are a lot of fees that come with filing the Articles of Incorporation. And corporations pay fees to the state in which they operate.
Regulations and Formalities
C corporations experience more government oversight than other companies due to complex tax rules and the protection provided to owners from being responsible for debts, lawsuits, and other financial obligations.
No Deduction of Corporate Losses
Unlike an S corporation shareholder cannot deduct losses on their tax returns.
