Law Offices of
Frequently Asked Questions About Business Law
What is "Business Law"?
It is a highly diverse service that includes:
- How to set up and maintain business formation and organization
- Contracts used in the conduct of a business
- Business Planning
- Mergers and acquisitions
- Other procedures relating to the business operation
What is the Difference Between a Subchapter C and S Corporation?
Subchapter C Corporations
Subchapter C corporations face double taxation on their profits when they pay dividends.
C corporations file their own tax returns and pay taxes on profits before paying dividends to shareholders, and then shareholders are subsequently taxed on their individual returns.
Subchapter S corporations
Subchapter S corporations are allowed to insulate shareholders from corporate debts but avoid double taxation imposed by subchapter C. To qualify they must meet the following criteria:
- Must be domestic
- Must not be affiliated with a larger corporate group
- Must have no more than one hundred shareholders
- Must have only one class of stock
- Must not have any corporate or partnership shareholders
- Must not have any nonresident alien shareholders.