Legal Question in Business Law in California

what are the differences between a C corp and an S corp in california

i am a co owner of a small business setting up in california[moving from colorado] and need to incorporate.at the moment we are a's' corp i would like to understand the pro's and cons of changing to a 'c' corp. personal liabilities,tax issues,requirements for the board of directors,etc.any information would be greatly appreciated


Asked on 12/02/06, 2:31 pm

2 Answers from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: what are the differences between a C corp and an S corp in california

S Corporation shareholders bear the tax of the corporation via their personal income tax returns. Call me directly at 16198468947.

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Answered on 12/03/06, 3:40 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: what are the differences between a C corp and an S corp in california

The difference between a C corp and an S corp only deals with taxes. By default, new corporations are C corps unless the shareholders decide to make the election to become an S corp. All of the other issues you mentioned such as personal liability and the board of directors are treated the same.

When you make the S election, the income is taxed on the returns of the shareholders as opposed to the corporation. Before making deciding whether or not to make the S election, you should talk to a CPA or other tax expert.

I work very closely with a number tax consultant that would provide a complimentary consultation on your matter. Please contact my office for further assistance.

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Answered on 12/02/06, 2:38 pm


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