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Corporation

Start your business on the right path

Launch as a corporation—whether you have plans to crowdfund or go public. Learn more to see if it's what you need—or start forming today.
Corporation (Inc) Packages start at $149 (plus filing fees). These costs may be tax deductible.
See pricing options
Meeting attendees seated while listening to a presenter who’s holding a whiteboard marker.
We’ve made dreams a reality for 350,000+ entrepreneurs.
Meeting attendees seated while listening to a presenter who’s holding a whiteboard marker.
We’ve made dreams a reality for 350,000+ entrepreneurs.

Why start a corporation

Attract investors

Raise funds by appealing to investors who may prefer corporations for their ability to offer stock.

Entice employees

Win over—and keep—top talent by giving them shares.

Look more official

Corporations have more clout—which can make it easier to do business with other companies.

Two paths you can take

About 70% of our customers choose to be an S corporation, but don't feel like any decision is final.
You can always convert to a C corporation later.

How it's taxed
How it's owned
How shares work

S corporation

Once—only shareholders pay taxes on profits received.
Limited to 100 shareholders who must be U.S. citizens or residents.
Owners can only get common stock which comes with voting rights.

C corporation

Twice—the business pays taxes at the corporate level, and shareholders pay taxes on income received.
No limits on how many people and who can own shares.
Owners may get preferred stock—which comes with no voting rights but priority to dividends before common shareholders.
S corporation
C corporation

How it's taxed

Once—only shareholders pay taxes on profits received.

How it's owned

Limited to 100 shareholders who must be U.S. citizens or residents.

How shares work

Owners can only get common stock which comes with voting rights.

How it's taxed

Twice—the business pays taxes at the corporate level, and shareholders pay taxes on income received.

How it's owned

No limits on how many people and who can own shares.

How shares work

Owners may get preferred stock—which comes with no voting rights but priority to dividends before common shareholders.

It's simple to get started

100% Satisfaction Guarantee

We do right by you—so we'll refund our fee if you're unhappy with our services.

Why choose us

Do it right

Making corporations happen is our thing. (Trust us. We've done it 400,000+ times.)

Save time

Leave the legal jargon and stacks of forms to us—and get back more of your time.

Get connected

We'll introduce you to trusted partners who can help your business grow.

Frequently asked questions

What's the difference between a corporation and an LLC?
Both protect owners so they're not personally on the hook for business liabilities or debts. But, key differences include how they're owned (LLCs have one or more individual owners and corporations have shareholders) and maintained (corporations generally have more formal record-keeping and reporting requirements). Even though LLCs are considered easier to start and maintain, investors tend to prefer corporations.
How does forming a corporation protect my assets?
It ensures that you and other shareholders aren't personally on the hook for company debts and liabilities.
Why do many corporations form in Delaware?
Large public corporations or those planning to go public can benefit from things like Delaware's well-established and predictable body of corporate law—aka how courts tend to resolve business disputes. Venture capital firms and angel investors also often prefer Delaware corporations. However, most small businesses form in the state where they do business to avoid added costs and complexities.
What are shares, and what types are there?
Think of shares as your piece of the ownership pie—and there are two main types (i.e. "common" and "preferred").

Common shareholders have voting rights and can receive dividends if they're issued. Preferred shareholders have priority over common shareholders when it comes to dividends and payout claims (if the corporation becomes insolvent).
What corporate positions are required in my state?
It varies.

Many require you to fill certain corporate officer titles (e.g. president, secretary, treasurer). Some allow one person to hold all positions.
How can I go from an S corporation to a C corporation?
You need majority shareholder consent to switch before you can change your status with the IRS.
I had no idea what to do and LegalZoom took all the worry out of the process for me. Now, I can concentrate on getting my business up and running!
—Zina C., Hatch, UT

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Questions and answers

This public forum is not intended to provide legal advice and is not a substitute for professional legal advice. Unless specifically indicated, the content is not drafted, supported, or vetted by LegalZoom. It is simply a place for customers to help customers. If you need legal advice, LegalZoom can connect you to a licensed and independent attorney. If you are providing answers, please do not provide legal advice if you are not qualified or licensed to do so.

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