Most popular business types
Your business formation includes:
Additional business formation types supported by CT Corporation
Nonprofit corporation
Nonprofit corporations are formed to benefit a charitable, educational or other public causes specific public purpose.
Benefit corporation
Benefit corporations, also known as a “B Corps” are created to serve a beneficial public purpose while pursuing a profitable bottom line.
Special purpose entity or special purpose vehicle formation
A special purpose entity (SPE) or vehicle (SPV) is a unique entity or means of holding on to an asset in a place separate from the rest of your business.
Limited liability partnership
An LLP is a partnership that allows each partner to share in management and provides some degree of protection from the liabilities of the partnership, including those caused by the actions of other partners.
Professional limited liability company
Many states require licensed professionals, such as doctors, lawyers, accountants, architects, or engineers, to form PCs or PLLCs, rather than regular corporations or LLCs.
Limited partnership
A limited partnership (LP) is like a general business partnership, but it offers limited liability protection to some partners.
Learn about the differences between Corporations and LLCs from CT Corporation
Ten Differences Between LLCs & Corporations
Explore the differences between an LLC (Limited Liability Company) and a Corporation beyond those related to taxes, including management, dividends and more.
Common needs related to business formation or incorporation
Employer ID number (EIN)
A federal tax identification number is often requested to file tax returns and open bank accounts.
Business License Solutions
Trust CT Corporation's extensive experience to help your business maintain compliance.
Foreign qualification out-of-state registration
Foreign qualification is the process of formally registering your business in a state other than your formation state.
Registered agent services
A registered agent is required by all 50 states. Rely on CT Corporation to handle important legal and state documents promptly and correctly.
Choosing a structure for a small business
Listen to lawyer and business expert Teresa Goody, CEO of The Goody Group, discuss considerations for choosing a legal business entity and where to find the information to make an informed decision.
Business formation FAQs
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What is a C Corporation?
A C Corporation (also known as a “C Corp”) is a legal entity that protects the owners’ personal assets from creditors. It can have an unlimited number of owners and multiple classes of stock. Unlike an S Corporation or an LLC, it pays taxes at the corporate level.
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What steps must I take to form a C Corporation?
You must file Articles of Incorporation with the state where you’re based and designate a Registered Agent to receive official and legal documents on behalf of your business. You must also obtain an employer ID number (EIN), which is often required for tax purposes and business banking.
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Can I change my corporation status or convert to an LLC in the future?
Yes, you can convert an S Corporation to a C Corporation or an LLC should your business needs change. The decision to convert must be approved by the shareholders. Conversion planning depends on your company’s specific circumstance, so be sure to discuss your plans with a legal professional.
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What compliance rules must I follow as a C Corporation owner?
C Corporations need to have shareholders, directors, and officers. They must hold director and shareholder meetings, keep corporate minutes, and allow shareholders to vote on major corporate decisions. Your C Corporation also needs to file annual reports and maintain good standing in state(s) where you’re incorporated.
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Are there any advantages to operating as a sole proprietor?One advantage is no initial paperwork and no ongoing state formalities, such as annual reports. However, since CT can mitigate the paperwork involved for LLC, C and S Corporations, this isn’t a significant advantage. From a tax perspective, you avoid double taxation—all business income, profits, losses, and expenses are reported on your personal tax return. However, the same is true of LLCs and S Corporations—without the risks of personal liability you constantly risk as a sole proprietor.
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Are there any requirements imposed on sole proprietors?Yes, most businesses need licensing and permits to operate—your business structure doesn’t change that. Additionally, you’ll want a business bank account to withstand scrutiny from IRS. To open one, many banks require a separate business name, which means you’ll need to file for “Doing Business As” (DBA) certificate.
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