Response to the following:
One typically thinks of C corporations as large companies. These corporations are publicly traded and are required to be structured as C corporations.
However, not all C corporations are large; many are small, closely held, and even single-shareholder corporations. Your client may intends to structure his company as a C corporation.
Using a minimum of 450 words, list and discuss the requirements that need to be met when structuring a business as a C corporation.
Explain some advantages and disadvantages of using the C corporation as a legal structure.
Finally, how might officers of the corporation be compensated (for example, the sole shareholder/chief executive officer), and what implications does this have on that officer's personal tax situation and the tax situation for the corporation?
Instructions
Research the C Corporation and explain what requirements need to be met to structure a firm this way.
Explain (don't simply list) some of the advantages and disadvantages of this structure over other legal structures.
Research and explain how officers are compensated, remember Jones is considering using this structure so how will this affect his tax situation?