Business Formation
Corporation Formation
The most formal structure — shareholders, a board, corporate records — and generally the right call only when you're raising outside capital or planning to go public someday.
What it is
A corporation is a legal entity fully separate from its owners (shareholders), run by a board of directors, with more required formality than an LLC: bylaws, a board, shareholder meetings, and minutes. By default it's a C-corporation, taxed at the entity level and again when profits are distributed as dividends — the "double taxation" you may have heard about. It can also elect S-corp taxation to avoid that, subject to IRS eligibility rules (generally one class of stock, 100 or fewer shareholders, all U.S. individuals).
Most small business owners don't need this level of formality. We recommend it when your actual plans — outside investment, multiple stock classes, a future IPO — call for it, not by default.
Who it’s right for
- You're planning to raise venture capital or angel investment — most institutional investors expect a C-corp
- You want to issue and track multiple classes of stock, or plan an eventual IPO
- You want the option to elect S-corp taxation directly at the corporate level, rather than through an LLC
Who it’s wrong for
- You're a solo owner with no near-term plans to raise capital — the corporate formalities (board, minutes, bylaws) are overhead you likely don't need yet
- You want to avoid double taxation on distributed profits — a C-corp is taxed at the entity level, then again on dividends, unless you elect S-corp status
- You want the simplest possible ongoing maintenance — an LLC is almost always lighter to run
What we do
- 1Confirm a corporation is actually the right structure for your growth plans before you take on the added formality
- 2File your Articles of Incorporation with the state
- 3Prepare your bylaws and initial corporate resolutions
- 4Obtain your EIN and set up your corporate records book (stock ledger, meeting minutes template)
- 5Advise on C-corp vs. S-corp election at formation, and set up bookkeeping and payroll
What it costs
Starting at $450*
Starting price when paired with monthly bookkeeping. Does not include state filing fees, billed separately based on your state.
*Starting price applies when bundled with our monthly bookkeeping service. Ask us for formation-only pricing if you don’t need bookkeeping included.