Call For A Free Consultation
CALL: 859-781-9100

Should I create a C corporation?

If you are starting a business in Kentucky, you are likely weighing the options for the various types of corporations you can create. While there are plenty of choices, the most popular one across the country is a C corporation, according to This is due to many factors that may make it a beneficial option for many companies.

First is the difference in terms of corporate ownership. While an S corp is limited to 100 shareholders, a C corp gives business owners the ability to divide shares between as many holders as needed. There are also no restrictions when it comes to who can become a shareholder. Partnerships, trusts, LLCs and other C corps are allowed to be shareholders. If you believe that the future of your business will lead to more than 100 shareholders who could be of various types, you may want to consider a C corp.

Also, a C corp has perpetual existence. The owner can leave the company and the C corp can still remain intact. There may also be less liability to the shareholders, employees, directors and officers when a C corp is used in the business model.

Another factor are taxes. C corps are subject to double taxation first at the company level and then as shareholder dividends. Shareholders are also restricted from deducting losses on their personal tax returns. For many business owners, the advantages of the C corp may outweigh any disadvantages that may accompany it but it is important to consider all of the various entities and always consult with your attorney and tax advisor. This information is meant to inform business owners about the benefits of C corporations and should not be taken as legal advice. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact our attorneys today We Are Ready To Listen

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Gatlin Voelker,PLLC

Gatlin Voelker, PLLC
2500 Chamber Center Dr. Ste. 203
Fort Mitchell, KY 41017

Phone: 859-781-9100
Fax: 888-456-9179
Fort Mitchell Law Office Map

Call : 859-781-9100