get your C-corp
but what is a C-corp?

Because Corporations are separate legal entities, you must treat them good (at least as good as the mother-in-law you’re trying so hard to impress).

You must hold regularly scheduled meetings (don’t skip these like that old ‘Mr. and Mrs. Smith DVD that barely plays anymore. and who still has DVD players, anyway).

You will need to setup a separate bank account. You can’t be mixing personal and corporate funds, capiche? That’s a big no, no. In fact, make that a triple no, no, no.

You must also file a separate corporate tax return.

What does all of this mean?

That if you fail to follow the necessary formalities you may lose your corporate veil (it may be pierced), which is your liability protection.

You need to treat your corporations right, if you want them to treat you right. Understand?

C Corps and S Corps are required to issue stock to its shareholders.

Basic stock stuff.

That is one of the coolest features of C-Corps: STOCK OPTIONS.

You can even put your company on the stock market to be publicly traded.

Corporate shares have liquidity (which probably means something really cool, but you should talk to a lawyer about that sort of thing. Something to do with water beds, most likely).

And shares of the company can be transferred with ease (more easily) than other types of structures.

That’s it for now.

If you have more questions, consult your favorite local lawyer, or schedule a phone meeting with us.

Corporations can be traced back to the 1500s, and their creation is said to have helped humanity move on from the Dark Ages.

See, before corporations, business ventures had no protection. In other words, business men were risking their personal assets (and in many cases their lives) when they started businesses.

Take ship adventurers (pretty sure that’s not what they were called, but whatever) as an example. They would collect money from investors and say SHIPS AHOY but never C’est La Vie because they were personally liable to a massive extent.

If they travelled the seas and didn’t come back with enough money to pay back their investors, they would be thrown into debtor’s prison or hanged for their crime of failure.

This is a drastic consequence.

Eventually, certain European governments realized the stakes were too high for business ventures and they invented to MIGHTY CORPORATION to encourage entreprenuers and risk-takers to do just that: take risks and be awesome and not have to worry about being thrown in prison for their debts or being murdered.

So that’s nice.

At least, we think so.

It’s good for society writ-large to encourage the crazy ones among us (the ones who, for some reason, believe we can start a business: that we have something to offer the world) to take the risk, shoulder the burden, and maybe even achieve something (create a valuable product or service) that benefits all of us.