What is an Ohio Corporation?

Elliott Stapleton Corporation

A corporation may be formed for any profit business or a nonprofit/social organization. Individuals who own shares in a corporation are called shareholders. A corporation can take two forms, depending on your tax election: 1) C-corporation or 2) S-corporation.

To qualify as an S corporation, the corporation’s shares must be limited in number and must be held by resident citizens or a qualifying trust.

A corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.

Some of the advantages of a Corporation include:

  • The ability to establish incentive stock option plans,
  • Deductions for the cost of employee fringe benefits,
  • The ability to carry losses forward to offset future profits, and
  • Avoidance of self-employment taxation and social security taxes on dividend distributions.

These considerations, as well as others, should be evaluated with counsel and your accountant before deciding on an entity.

 

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About the Author

Elliott Stapleton

Elliott is a partner in the firm of Cornetet, Meyer, Rush and Stapleton, LPA. His business clients range from small single member companies to large privately held businesses.

Elliott’s legal services include advice on Business Formation and Transactions, Real Estate Transactions, Trademark Law, Copyright Law, Estate Planning, and Probate Administration.