Legal Question in Business Law in Texas

Is there a difference in the Articles of Incorporation for a C corp and S corp? If so what are they? Or is it there a filing difference?

Asked on 2/08/19, 12:53 pm

1 Answer from Attorneys

Frank Natoli Natoli-Legal, LLC

The difference is in the tax treatment. An S-Corp is a C-Corp that has by way of an IRS 2553 requested pass-through taxation. The S-Corp does have statutory limitations that you should be aware of that could be an issue moving forward (e.g., only US residents can own shares, only individuals can own shares, among others). This is why the S-Corp is not well suited for investment and growth. It makes more sense usually for professionals, consultants, etc.

Before you commit to anything, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

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DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 2/08/19, 1:09 pm

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