Whether or not you should incorporate<\/strong> your business is a question that should only be answered after consulting with an attorney<\/strong>, and perhaps even a Certified Public Accountant (CPA).\u00a0 However, we will explore some of the advantages or benefits of forming a for profit corporation in Tennessee<\/strong>, and the basic types of for profit corporations.<\/p>\n Is there much difference between a C-Corp<\/strong> and a S-Corp<\/strong>?\u00a0 Yes.\u00a0 The major difference is the way the two types are taxed<\/strong>.\u00a0 A C-Corp or standard corporation is taxed<\/em> as an entity at the flat corporate tax rate<\/strong>, then the stockholders are taxed for any dividends<\/strong> (profits received) at their own individual tax rate as reported on form 1040.\u00a0 S-Corps are generally not taxed as an entity<\/strong>, but rather the shareholders are individually taxed<\/strong> on the profits or their proportionate share thereof.\u00a0\u00a0 For more details speak to an attorney, and perhaps a CPA about the specific tax issues involved in corporations.<\/p>\n One of the biggest advantages to a corporation versus a partnership or proprietorship\u00a0<\/em> is protection from liability<\/strong>.\u00a0 Although you can not shield yourself from your own individual liability (you personally caused the damages) you can insulate yourself and limit your personal exposure<\/strong> to liability brought on by others, like employees<\/em>.\u00a0 Here is how it works, a corporation is a separate and distinctive entity<\/strong>, an artificial person so to speak.\u00a0 If an employee makes a mistake and creates liability then the corporation is sued, and is, perhaps, responsible for payment of damages.\u00a0 However, in this scenario, with a properly formed and maintained corporation (in good standing, etc.) your personal assets (house, cars, saving accounts, etc.) are not at risk, only the corporation assets.<\/p>\n There are other advantages to incorporating your business.\u00a0 Contact an attorney to learn more<\/a>.<\/p>\n Read Disclaimer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Should I incorporate my business? Whether or not you should incorporate your business is a question that should only be answered after consulting with an attorney, and perhaps even a Certified Public Accountant (CPA).\u00a0 However, we will explore some of the advantages or benefits of forming a for profit corporation in Tennessee, and the basic types of for profit corporations. There are two (2) basic types of corporations: Standard for profit corporation called a “C-Corp” and a sub-chapter S corporation or S-Corp for short (smaller corporations). Is there much difference between a C-Corp and a S-Corp?\u00a0 Yes.\u00a0 The major difference is the way the twoRead More →<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","ghostkit_customizer_options":"","ghostkit_custom_css":"","ghostkit_custom_js_head":"","ghostkit_custom_js_foot":"","ghostkit_typography":"","footnotes":""},"categories":[11],"tags":[53,196,197,220],"yst_prominent_words":[1120,440,1110,1112,1119,1079,1115,1118,1105,1114,1111,1116,1109,1123,1122,1117,1108,1113,1107,1121],"class_list":{"0":"entry","1":"post","2":"publish","3":"author-admin","4":"post-293","6":"format-standard","7":"category-corporations","8":"post_tag-attorney-at-law","9":"post_tag-incorporate","10":"post_tag-incorporation","11":"post_tag-lawyer-legal-professional"},"featured_image_src":null,"author_info":{"display_name":"Todd Couvillon","author_link":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/author\/admin\/"},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"hoot-small-preview":false,"hoot-large-preview":false,"hoot-medium-preview":false,"hoot-wide":false,"hoot-extra-wide":false,"hoot-boxcontent":false},"uagb_author_info":{"display_name":"Todd Couvillon","author_link":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Should I incorporate my business? Whether or not you should incorporate your business is a question that should only be answered after consulting with an attorney, and perhaps even a Certified Public Accountant (CPA).\u00a0 However, we will explore some of the advantages or benefits of forming a for profit corporation in Tennessee, and the basic…","_links":{"self":[{"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/posts\/293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/comments?post=293"}],"version-history":[{"count":0,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/posts\/293\/revisions"}],"wp:attachment":[{"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/media?parent=293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/categories?post=293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/tags?post=293"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/purplelawfirm.com\/law-and-you-chattanooga\/wp-json\/wp\/v2\/yst_prominent_words?post=293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}There are two (2) basic types of corporations: Standard for profit corporation called a “C-Corp” and a sub-chapter S corporation or S-Corp for short (smaller corporations).<\/h2>\n
Corporation Protects You From Liability Caused By Others<\/h3>\n