Benefits Of A C-Corporation Versus LLC

Many people feel overwhelmed by the C-Corp, but it can be one of the more powerful entities, especially for building business credit. You might be thinking that a corporation must be more tedious to maintain than an LLC.  In the end a C Corporation will outlast the LLC.  Some business owners don’t want to file a “resolution” for the corporation, to say nothing of the minutes of meetings.

The truth is, even if you have an LLC you should be doing this.

I have found a program called www.managemyminutes.com, which is really easy and allows you to fill in information required for documentation.  It even has prompts, and walks you through the process so you can keep your records.  Then as soon as you enter the required information it can print out minutes and resolutions.  You print them and add them to your corporate file, and you’re done.

For a mere $199.00, having this company do it for you is a no brainer. People who do this through an attorney usually pay them from $500 to $3,000 dollars.  It even provides standard contract templates that you can use. And you can set it up so it emails you reminders – at the end of the year, for example, saying you need to do your statement.  It will notify you when it is due.

It seems that many people are also afraid of C-corps because they think they need to be a big company to call their business a corporation.  In reality, in most states you only need one person to have a C-corporation; while some others do require at least two.

The other benefit to an Entrepreneur is how it enhances your benefits.  A C-corporation can cover up to 100% of certain expenses, and give you a tax write off.

For example, God forbid, if you get cancer; because your business is set up as an LLC, you are going to be responsible for 20% of the bill.

There are a number of things that the C Corporation can do that the LLC cannot.