The National Directory of Certified Public Accountants

Ask A CPA - C Corporations

What Are Some Advantages And Disadvantages Of Selecting To Be A C Corporation Compared To Other Entities?

Some advantages are: you have limited liability; there are easy ways to transfer ownership; there is a perpetual life and the corporation has the ability to raise capital through the issuance of stock. Some disadvantages include: there is a double taxation of profits; the entity is subject to various state and federal restrictions; and a corporate charter may restrict the types of business activities. Speak to your local CPA to determine the best entity choice to fit your needs.

If you need professional help with "C Corporations" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.