Resnick Law, P.C.

1 (888) 724-4071

Free Phone Consultation

Call: (248) 642-5400

Menu
  • Home
  • Our Firm
    • Firm Overview
    • Attorneys
      • H. Nathan Resnick
    • Attorney Referrals
    • Views & News
    • Events
    • Careers
    • Close
  • Our Clients
    • Who We Represent
    • Results
    • Testimonials
    • Close
  • Practice Areas
      • Appeals
      • Asset Protection
      • Bankruptcy
        • Chapter 7 Bankruptcy
        • Chapter 9 Bankruptcy
        • Chapter 11 Bankruptcy
        • Chapter 13 Bankruptcy
        • Garnishment
        • Solutions Without Bankruptcy®
      • Business Law
      • Construction Law
      • Contracts
      • Corporate Litigation
      • Creditor Rights
      • Debt Relief Laws
      • Estate Planning
      • Foreclosure
      • Guardianship & Conservatorship
      • Liability of Electronic Communications
      • Property Tax Appeals
      • Real Estate & Zoning
      • Receivership
      • Short Sales
      • Trust & Probate Administration
    • Close
  • FAQ
    • Michigan Bankruptcy Laws
      • Chapter 7 Bankruptcy
      • Chapter 9 Bankruptcy
      • Chapter 13 Bankruptcy
    • Estate & Probate
      • Estate Planning Basics
      • Will and Trusts
      • Death and Taxes
      • Probate Law Questions
      • Other Assets and Tools
      • Changing Your Wills, Estates & Trusts
    • What is a Garnishment?
    • Close
  • Blog
  • Resources
    • Videos
    • Close
  • Contact
    • Close

The Benefits of Starting a C Corp

January 7, 2019

One of the most difficult decisions questions that any entrepreneur faces when starting a new business is what type of business structure to utilize. One of the many types of possible business structures is the C corp, which offers some distinct advantages over other structures, such as LLCs or S Corps. The following are some of the primary advantages offered by C corps. For more in-depth guidance on what business structure is right for your venture, reach out to a business attorney for help.

To determine if a C corporation is a good fit for you, it is critical to weigh both the advantages and the disadvantages offered by this type of corporate structure.

Advantages of a C Corp

There are a number of distinct advantages available through C corps. Some of the reasons why individuals decide to structure businesses as C corps include the following:

  • Profits from C corporations do not pass directly to individual owners and as a result do not influence tax brackets. Instead, profits remain in the company and are taxed at the corporate rate.
  • C corporations are capable of taking significant capital and operating losses. The Internal Revenue Service will not scrutinize a person for reporting losses a number of years in a row. Instead, a C corp is capable of carrying losses forward and applying them in later tax years.
  • C corporation income is taxed at a 21% flat rate. Any individual with taxable income of $38,700 or more will be taxed at least 22% and sometimes even more.  
  • Shareholders are able to serve as a C Corporation’s directors and employees.
  • C corporations are able to deduct health insurance that is paid for workers. They are also able to deduct the cost of medical reimbursement plans.
  • Because C corporation’s tax years are not based around the calendar year, the owners of C corporation are able to perform “income shifting” which can mean the company ends up paying a much lower amount in taxes.

Disadvantages of C Corps

Some of the reasons why business owners decide against a C corporation structure include the following:

  • C Corps are double taxed. These corporations are taxed first when the business earns income, and the shareholders are then taxed on the amount they receive.
  • The formation of a C corporation is particularly complicated and requires business owners to create a complex series of articles of incorporation and bylaws.
  • C corporations face a number of substantial legal challenges. In addition to filing articles of incorporation, many states require corporations to have specific provisions regarding how the company’s management handles matters.

Speak with an Experienced Corporate Lawyer

When you are in the process of creating a business, it can be challenging to determine which business structure works best for you. Fortunately, at Resnick Law, our corporate attorneys have substantial experience with each type of business structure and can help determine which one matches your current needs. Contact our law office today to schedule an initial free consultation.

(image courtesy of Rawpixel)

Filed Under: Business Law Tagged With: business law, C Corp

Have Questions? Need Legal Guidance?

Have your case reviewed by a Resnick Law attorney today!

Get Started Now

Do You Have a Claim?

Call (248) 642-5400

Free Phone Consultations
Same Day Response

Practice Areas

Our Firm Is Your Solution For:

  • Asset Protection
  • Bankruptcy
  • Business Law
  • Testimonials
  • Appeals
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate and Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronic Communications
  • Property Tax Appeals
  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Stay in touch

Sign up to get interesting news and updates delivered to your inbox.

Our firm’s practice areas include:

  • Appeals
  • Asset Protection
  • Bankruptcy
  • Business Law
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate & Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronics
  • Property Tax Appeals

 

  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

 

Martindale-Hubbell
dbusiness
Resnick Law Peer Review Rated

Recent Posts

  • Struggling With Tax Debt in Michigan? Your Guide to the IRS Fresh Start Program
  • Successfully Addressing Diversity in a Post-Pandemic Workplace
  • ESG Disclosure Simplification Act Passed by House
  • Business Debt and Partnerships: What You Need to Know to Protect Yourself
  • Mergers and Acquisitions During the COVID-19 Pandemic

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Connect With Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Get Help Now

Contact Us

Copyright © 2025 Resnick Law, P.C. All rights reserved · Disclaimer · Privacy Policy

Attorneys at Resnick Law, P.C. serve clients in Bloomfield Hills, Metro Detroit, the Tri-County Area and throughout southeast Michigan, including: Oakland County, Wayne County, Macomb County, Livingston County, Genesee County, Washtenaw County, Lapeer County, St. Clair County, Birmingham, Rochester Hills, Rochester, West Bloomfield, Bloomfield Township, Novi, Royal Oak, St. Clair Shores, Grosse Pointe, Walled Lake, Ferndale, Berkley, Sterling Heights, Clarkston, Farmington Hills, Ann Arbor, Howell, Brighton, Mount Clemens, Flint, Grand Blanc, Livonia, Dearborn, Troy, Plymouth, Pontiac, Northville, Southfield, Warren and Utica.

All materials and content in this Blog are provided for informational purposes only. Information contained in this Blog does not create an attorney-client relationship with Resnick Law, P.C. and any recipient of this Blog. The contents of this Blog, in whole and in part, are not to be construed as a legal opinion or legal advice. All materials and content in this Blog are provided for informational purposes only. Persons viewing information contained in this Blog should not act upon such information without first seeking appropriate and specific legal or professional consultation. Please contact an attorney at our office to obtain legal advice specific to your needs.

Viewing of this website does not create an attorney/client relationship with Resnick Law, P.C. All materials and content on this website are provided for informational purposes only. These informational materials are not intended to constitute legal advice and should not be construed as such, because each person’s legal matters are unique and results will vary. The contents of this website do not reflect current legal developments, verdicts, settlements or specific client endorsements. Persons viewing information contained in this website should not act upon such information without first seeking appropriate and specific legal or professional advice. Please contact an attorney at our office to obtain legal advice specific to your needs.