This By-Laws document contains the following information: the name and location of the corporation, the shareholders, and the duties of the officers.
Bylaws Of A Corporation With The Irs In Cook
Category:
State:
Multi-State
County:
Cook
Control #:
US-00444
Format:
Word;
Rich Text
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C corporations require a strict governance structure: shareholders, directors and officers. All state C corporation statutes require a very strict governance structure, which includes having shareholders, a board of directors and officers. Each of these titles carries its own roles and responsibilities.
Unlike an S Corporation or an LLC, it pays taxes at the corporate level. This means it is subject to the disadvantage of double taxation. As well, a C corp also must comply with many more federal and state requirements than an LLC. C corporations provide the following considerable advantages: Separate legal identity.
C Corporations distribute two main types of dividends: qualified and ordinary. Qualified dividends often enjoy lower tax rates, typically 15% or 20%, making them more favorable to shareholders. Conversely, ordinary dividends are taxed at regular income tax rates.
One significant disadvantage of C corporations is they may be subject to what is commonly referred to as “double taxation,” where business profits are taxed first at the corporate level, and then at the shareholder level.
C corp vs. A corporation is automatically taxed as a C corp, but the business can file an IRS election to be taxed as an S corp instead. There are some key differences to each tax designation. A C Corp can have as many shareholders as it wants, while an S Corp must adhere to a maximum of 100.
Profits may be distributed to shareholders in the form of dividends, or they may be reinvested or retained (within limits) by the corporation.