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FAQs

FAQs

What is a C Corporation in California?

A C Corporation in California is a business entity that provides its shareholders with liability protection while functioning as a separate legal entity. This means the personal assets of the shareholders are shielded from the debts or legal obligations of the corporation. C Corporations are among the most common business structures in the United States and are particularly well-suited for companies that intend to attract investors, issue shares, or significantly expand their operations.

The major characteristics of a C Corporation include the way the taxation structure is organized. A corporation will be taxed both at the federal and state levels based on its income. Further, the dividend distribution of a corporation is also taxed at the individual level, thereby making what is referred to as "double taxation" of dividends. Despite these issues, many businesses elect the C Corporation form of organization due to the advantages that this form provides regarding access to capital via stock issuances.

The main steps toward incorporation of C Corporation in California include filing the Articles of Incorporation with the California Secretary of State, preparation of corporate bylaws, and permits or licenses where required. Furthermore, there are continuing compliance requirements for being a C Corporation with the state of California: the need to conduct annual meetings, specific book-and-record retention, and submission of an annual tax return.

One IBC USA will help the company fully with the establishment and management of the C Corporation in California, from filing all the necessary documents to being compliant with both state and federal law. The expertise of One IBC USA in corporate management will help clients make the most of operations so that full attention can be placed on growing their business, ensuring a strong foundation for future success