US Dellaware C Corporation Raising outside funding: a Delaware C Corporation is the entity generally preferred by outside institutional investors who might be unable to invest in LLCs Ownership: a C Corporation’s structure facilitates granting equity to employees, advisors, and investors Tax treatment: a C Corporation with early startup losses can generally use the losses in future years, subject to various limitations, to reduce future taxable income when the company becomes profitable Defined governance structure: C Corporation has a well-known, regulated, management structure. With Alphacompanyformations, you can form a new C Corporation or a subsidiary of an existing corporation. If you choose to form an LLC, you establish a new company that is owned by one individual or a group. When to form your company: If you plan to form your company near the end of the calendar year, potentially wait until the start of the new year to form your company, given the tax implications. C Corporations active in Delaware any time before December 31 owe at least the minimum Delaware franchise tax for that year. LLCs active before December 31 owe the full annual LLC tax for that year. Neither the franchise tax nor the LLC tax is prorated. Your company might also owe U.S. federal corporate income tax for the outgoing year. It might also owe taxes to a U.S. state other than Delaware, depending on where the LLC operates. |
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