C-corporation – essay sample is a legal form of business entity able to have unlimited number of stockholders (both residents and non-residents) income of a c-corporation is a subject to corporate taxation. Benefit corporation laws vary somewhat from state to state but, in general, a benefit corporation must have a general benefit purpose stated in its articles of incorporation a b corporation is formed by filing articles of incorporation with the state—the same as with a traditional corporation. One of the benefits of a corporation is having it provide lucrative employee benefits that are deductible by the corporation and tax free to the employees medical, life insurance, education, childcare, and retirement plans are just a few of the types of benefits available. As compared to a sole proprietor, partner or c corporation employee, then, an s corporation can often save $5,000, $10,000 or even $15,000 a year in the payroll taxes a business owner pays and, by the way, note that these amounts are savings per shareholder. A c corporation has the widest range of deductions and expenses allowed by the irs, especially in the area of employee fringe benefits a c corporation can set up medical reimbursement and other employee benefits, and deduct the costs of running these programs, including all premiums paid.
Another tax benefit of operating as an s corporation relates to the affordable care act (also known as obamacare) an active shareholder-employee in an s corporation won't pay the 38% obamacare surtax (also known as the net investment income tax) on s corporation profit. If the owners of the llc want to keep the business's profits in the llc in order to facilitate the growth of the business, the preferred option is a c corporation. Close corporations are generally more expensive to organize than c corporations or s corporations because they require a written shareholders' agreement, which typically must be drafted by an.
Benefits of mentoring for young people essay 2698 words | 11 pages the c corporation has many advantages and disadvantages first advantage is that is has limited liability the second advantage is that it has the ability to general capitol very quickly and easily another advantage is that it receives the corporate tax treatment. The c corporation is one of the most used business structures by owners starting a new business 3 min read benefits of a c corporation have enticed business owners for over 500 years and promoted economy however, to take advantage of the benefits, you have to know them and all of the ways they are. The operation of most corporations involve interactions with different states and a determination of the corporation's minimal contacts with other states has a major bearing on when and where a particular corporation can be made a part of litigation.
Owner protection from legal liability:once a new business's owner(s) successfully completes the incorporation process, the owner(s) have a limited amount of legal liability for the corporation's business activities and debts, because in the eyes of the law the corporation is a separate entity in order to maintain this limited liability, the. In contrast, losses of a c corp can only be utilized by the corporation to offset corporate income, and if a c corp has no income, losses are built up by the c corp for future use it should be noted that trusts can also take advantage of the tax benefits of s corps, which is beneficial for estate planning and asset protection purposes. C corporations are subject to double taxation of corporate profits when income is distributed as dividends this can be avoided by electing s corporation tax status with the irs this can be avoided by electing s corporation tax status with the irs. Advantages of c-corporation the very first advantage has to do with the number of shareholders a c-corporation can have unlike the s-corporation, which can only have 100, a c-corp can keep adding shareholders. Benefit – limited liability a corporation is an independent entity from its shareholders as a result, arguably the chief benefit of a c corporation is that its owners are generally protected from being personally liable for the business’s liabilities and obligations.
The tax implications of being a c corporation versus an s corporation or llc should be discussed with a trusted tax adviser operating as a corporation can have disadvantages while there are benefits gained from c corporation status, there are some downsides as well. This essay is to write a discussion paper which argues the benefits or disadvantages of human resources being a strategic business partner giving consideration to the impact of human resources polices and practices on strategy, people and organizational culture. Pennsylvania s corporation: the difference between a c corporation and an s corporation is a tax distinction only the shareholders may elect that the corporation be taxed as a c corporation, meaning that it will be taxed under subchapter c of the internal revenue code or an s corporation being taxed under subchapter s of the internal.
Essay on corporations this paper will discuss the characteristics of a corporation and the advantages and disadvantages to the corporate form of doing business. Owners of a c corporation can receive health coverage on a tax-free basis the corporation can fully deduct its premiums in contrast, s corporation shareholders must report the benefit as income and then deduct the premiums from gross income on their personal returns—this is merely a wash. In the wake of the tax cuts and jobs act, business owners nationwide are looking closely at whether incorporating as an s corporation or a c corporation will offer a greater reduction in their tax burdens over the long haul.
Essay: multinational corporations (mncs) usually large companies like mncs have their own websites that monitoring the actions of mncs in different countries this website is used to make it more easily to see by visitors and enables them to look benefits that earned by multinational corporations. A c corporation can deduct the cost of benefit as a business expense for example, they can write off the entire costs of health plans established for employees as business expenses these benefits are tax-free even for those receiving them. Closely held corporations can have benefit health plans, which will be better retirement and health insurance plans then those of non-corporation businesses the health insurance is fully deductible and up to a certain amount of group term life insurance benefits per employee.