A corporation or a C Corp is a legal “entity” that is separate from its owners/shareholders, its officers and its board of directors for income tax and liability purposes. As such, a corporation’s owners/shareholders have limited liability and are not typically personally liable for the corporation’s debts.
A Subchapter S corporation, also called an S Corp, is a legal “entity” that is separate from its owners/shareholders, its officers and its board of directors for income tax and liability purposes. Therefore, S Corps also offer limited liability protection for their owners and officers. However, an S Corp requires the owners/shareholders to hold a special election to have their income treated as partnership income and taxed to the owner’s individual tax forms. An S Corp is only available to businesses with 75 or fewer shareholders who must all be U.S. citizens or resident aliens.
SERVICES FOR BUSINESS INCORPORATIONS
At Noorani & Villar, we provide full services in incorporating your business, including conducting a search for availability of your proposed Corporate name with the Illinois Secretary of State, preparing and submitting the Articles of Incorporation with the State of Illinois, recording your Articles of Incorporation with the County Recorder, providing corporate record book including corporate seal and stock certificates, prepare stock certificates for corporate shareholders, preparing corporate by-laws, prepare employee expense reimbursement agreements, and obtaining an FEIN (Federal Employer Identification Number) from the IRS.
Please contact Noorani & Villar, P.C. if you wish to incorporate your business.