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Is a C Corporation right for you?

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If you’re considering starting a new business, or growing an existing one, you could gain significant advantages by structuring it as a C corporation. Compared with other common IRS-designated structures, like a sole proprietorship or Limited Liability Company (LLC), a C corporation can pay less in federal income tax—allowing the owner(s) to retain more revenue.

According to the IRS website, “a C corporation is recognized as a separate tax paying entity” from its owner. Yet the corporation still “conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.”

Pango Financial’s acclaimed DreamSpark plan supports C corporations, along with other configurations for new and existing businesses. The plan lets entrepreneurs and business owners turn retirement savings into funding—without debt, loan interest, upfront taxes, or penalties—while still planning for retirement.

Consider these reasons for choosing to register your business as a C corporation:

  • Write-off options: in a business that’s configured as a C corporation, shareholder salaries or bonuses, medical reimbursements and charitable contributions are all deductible, subject to certain limits. That can reduce the company’s tax burden significantly.
  • Tax flexibility for start-ups: As a C corporation, especially one that’s just starting out, you’ll have more opportunities to minimize taxes. The structure allows a lower tax rate than an individual on up to $50,000 in profit. You can also determine income and loss distributions in amore nimble way over fiscal years—and can even carryover losses.
  • Limitless growth potential. With a C corporation, investors who keep an eye on equity face fewer restrictions than with other common corporate structures. And when the business gets big enough to issue stock on a national exchange and be publicly traded, it must be a C corporation.

No matter how big you dream of growing your business, structuring it as a C corporation can support your success. Our DreamSpark plan includes expedited service and 12 months of free registered agent services for newly incorporated businesses.

Talk to Pango Financial today about options for funding your business and how our team of experts can.

For more about business financing in general, and the benefits of C corporations in particular, contact us at Pango Financial or call 1-855-WHY-PANGO (1-855-949-7264).Our specialists will set you up for success, show you how to make the most of your corporate structure, and craft a customized financial plan that supports your business.

SOURCE:  https://www.irs.gov/businesses/small-businesses-self-employed/forming-a-corporation

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