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Form Your C Corporation
Scale Without Limits
The preferred structure for startups seeking venture capital, companies planning to go public, and businesses that want unlimited growth potential with multiple stock classes.
Trusted by over 1,000,000 entrepreneurs
What is a C Corporation?
A C Corporation is a legal business structure that exists as a separate entity from its owners. It's taxed under Subchapter C of the Internal Revenue Code and is the standard corporation type in the United States.
C Corps offer unlimited growth potential, the ability to issue multiple classes of stock, and no restrictions on ownership. This makes them the preferred choice for companies seeking venture capital, planning an IPO, or wanting to offer equity compensation to employees.
Unlimited Growth
No cap on shareholders or investment
Flexible Stock
Issue preferred, common, and other classes
Any Shareholders
Individuals, entities, foreign investors
Perpetual Life
Exists independently of ownership changes
Who Should Form a C Corporation?
C Corps are ideal for businesses with ambitious growth plans and those seeking outside investment.
Venture capital firms typically require portfolio companies to be C Corps. The structure allows for preferred stock, liquidation preferences, and other investor-friendly terms.
If you're building a company with the goal of going public, a C Corp provides the structure needed for public markets and institutional investors.
C Corps can offer Incentive Stock Options (ISOs) with favorable tax treatment, making them ideal for attracting and retaining top talent.
C Corps can have foreign shareholders without restrictions, making them suitable for businesses with international investors or global expansion plans.
Businesses planning significant growth with multiple investors, complex ownership structures, or eventual acquisition benefit from C Corp structure.
Companies that reinvest most profits back into the business can benefit from the 21% flat corporate tax rate rather than higher individual rates.
How to Form Your C Corporation
We handle the complexity so you can focus on building your business.
Select your state of incorporation (Delaware is popular for VC-backed companies) and we'll check name availability.
- Free name availability check
- Delaware incorporation available
- State-specific guidance
Provide details about your corporation including directors, officers, and initial stock structure. Our smart forms guide you through.
- Stock structure setup
- Director/officer designation
- Expert review included
We file your Articles of Incorporation and prepare your corporate kit. You'll be ready to open bank accounts and accept investment.
- Same-day filing available
- Corporate kit included
- Investor-ready documents
Choose Your C Corp Package
All packages include state filing. Choose the level of support that's right for your business.
- Articles of Incorporation filing
- Name availability check
- Lifetime company alerts
- Online document access
- Corporate formation guide
- Everything in Basic
- EIN/Tax ID number
- Corporate bylaws
- Organizational minutes
- FREE Registered Agent (1st year)
- Stock certificates
- Priority processing
- Everything in Standard
- Expedited state filing
- Shareholder agreement template
- Board resolution templates
- Business license report
- Compliance calendar & alerts
- Dedicated account manager
- Annual report filing
All packages include our 100% satisfaction guarantee
C Corp vs S Corp vs LLC
Understand the key differences to make the best choice for your business.
Best For:
- • VC-backed startups
- • Companies planning IPO
- • Businesses with stock options
- • Foreign shareholders
Taxation:
Corporate tax (21%) + dividend tax. Can minimize through salary and reinvestment.
Ownership:
Unlimited shareholders, multiple stock classes, any entity type.
Best For:
- • Profitable small businesses
- • Self-employment tax savings
- • US citizen/resident owners
- • Simple ownership structure
Taxation:
Pass-through taxation. Save on self-employment tax via salary/distribution split.
Ownership:
Max 100 shareholders, one stock class, US individuals only.
Best For:
- • Small businesses
- • Real estate holdings
- • Flexibility seekers
- • Simple compliance needs
Taxation:
Default pass-through. Can elect S Corp or C Corp taxation if beneficial.
Ownership:
Unlimited members, flexible structure, any entity type.
Not Sure Which Structure is Right?
Our business formation experts can help you choose the best structure for your goals.
Frequently Asked Questions
Get answers to common C Corporation questions from our business experts.
What is double taxation and how can I minimize it?
Double taxation occurs when corporate profits are taxed at the corporate level (21%), and then dividends paid to shareholders are taxed again on personal returns. You can minimize this by paying reasonable salaries (deductible expense), reinvesting profits into the business, timing dividend distributions strategically, or considering S Corp election if eligible.
Why do venture capitalists prefer C Corporations?
VCs prefer C Corps because they can issue preferred stock with special rights (liquidation preferences, anti-dilution), have no ownership restrictions (allowing institutional investors), offer Qualified Small Business Stock (QSBS) tax benefits, and provide a clear path to IPO or acquisition. Most VC term sheets require C Corp structure.
Should I incorporate in Delaware?
Delaware is popular for C Corps seeking investment because of its business-friendly laws, specialized Court of Chancery, predictable legal precedents, and investor familiarity. However, if you're not seeking VC funding, incorporating in your home state may be simpler and less expensive.
What are the ongoing compliance requirements?
C Corps must hold annual shareholder and director meetings, maintain corporate minutes, file annual reports with the state, file federal and state tax returns, issue stock certificates properly, and maintain separation between personal and corporate finances. Our compliance services help you stay on track.
Can I convert my LLC to a C Corporation?
Yes, LLCs can convert to C Corps through a statutory conversion (if available in your state) or by forming a new corporation and merging the LLC into it. This is common when companies raise venture capital. We can help you navigate the conversion process.
What is Qualified Small Business Stock (QSBS)?
QSBS allows shareholders to potentially exclude up to $10 million or 10x their investment from capital gains taxes when selling C Corp stock held for 5+ years. This is a significant tax benefit for founders and early investors in qualifying C Corps.
How do stock options work in a C Corp?
C Corps can issue Incentive Stock Options (ISOs) with favorable tax treatment - employees don't pay tax until they sell the stock, and gains may qualify for long-term capital gains rates. This makes C Corps attractive for recruiting talent with equity compensation.
What's the difference between common and preferred stock?
Common stock is typically held by founders and employees, with voting rights and residual value after other claims. Preferred stock, usually held by investors, has priority in liquidation, may have special voting rights, and often includes anti-dilution protection and dividend preferences.
Do I need a board of directors?
Yes, C Corps are required to have a board of directors that oversees major decisions and appoints officers. Initially, founders often serve as the board, but as you raise funding, investors typically require board seats. We help you set up proper board structure.
What is the corporate tax rate for C Corps?
The federal corporate tax rate is a flat 21% on profits. State corporate taxes vary by state. While this may seem high, C Corps can deduct business expenses, salaries, and benefits before calculating taxable income, and the 21% rate may be lower than individual rates for high earners.
Can a C Corp have just one shareholder?
Yes, C Corps can have a single shareholder. Many startups begin with one founder as the sole shareholder. As the company grows and raises funding, additional shareholders are added. The corporate structure remains the same regardless of shareholder count.
How long does it take to form a C Corporation?
Formation time varies by state, from same-day in some states to 2-3 weeks in others. We offer expedited processing in most states. Once formed, you'll need to complete organizational steps like adopting bylaws, issuing stock, and obtaining an EIN before you're fully operational.
What documents do I need to raise investment?
Investors typically require Articles of Incorporation, bylaws, board resolutions, stock purchase agreements, investor rights agreements, and a cap table. Our Premium package includes templates for these documents to help you be investor-ready.
Can I change from C Corp to S Corp later?
Yes, if your C Corp meets S Corp eligibility requirements (100 or fewer shareholders, one class of stock, US shareholders only), you can elect S Corp status by filing Form 2553. However, there may be tax implications, so consult a tax professional before converting.
What happens to my C Corp if I want to sell the business?
C Corps can be sold through stock sales (buyers purchase shares) or asset sales (buyers purchase business assets). Stock sales are often simpler but may have different tax implications. The corporate structure makes acquisitions straightforward, which is one reason investors prefer C Corps.
Success Stories
Real experiences from founders who built their companies with us.
Tech Startup Founder
"We formed our C Corp through Cannki Kicker before our seed round. The process was smooth, and having investor-ready documents made due diligence much easier. We closed our $2M round 3 months later."
SaaS Company CEO
"The team helped us understand why C Corp was the right choice for our growth plans. Their Delaware incorporation was fast, and the compliance support has been invaluable as we've scaled."
Fintech Founder
"As a first-time founder, I had a lot of questions about corporate structure. The experts at Cannki Kicker guided me through everything. Now we're preparing for our Series B."
Why Choose Our C Corp Service?
Experience the most comprehensive C Corporation formation service for growth-focused companies.
Investor-Ready
Our packages include the documents and structure that investors expect, making fundraising smoother.
Fast Processing
Get your C Corp formed quickly with same-day processing available in most states.
Delaware Expertise
We specialize in Delaware incorporations, the gold standard for VC-backed companies.
Dedicated Support
Our corporate formation experts understand startup needs and are here to help you succeed.
Secure & Confidential
Bank-level encryption protects your information. We never sell your data to third parties.
Proven Track Record
Join over 150,000 companies that have trusted us with their corporate formation.
Ready to Build Something Big?
Join over 150,000 companies that have trusted us with their corporate formation. Start your C Corporation today and unlock unlimited growth potential.