C_Corp--Experts or experience only please?

Question

I am going to start a C-corporation. State of Pennsylvania requires on the application a description of what the business will be doing.

How can I word the application so the business activities can be anything....ie. So I can do any activity from services to real estate to whatever........basically, if I (as an example) say I am going to open a dry cleaners, how can I also provide computer services or hold rental properties?

Only experts please

Main reason for a C-corp, as a legal entity, the corporation can have lines of credit without personal credit being involved.....

Answer 1

You might want to pack all those things under the umbrella of and LLC.


With a C-Corp, once formed, they are a PAIN to dissolve. Also you are double taxed. Once when the corporation makes a profit, at somewhere around 21% (state and fed) and then again if you "draw" that profit out in any subsequent year, at whatever tax bracket your personal income is at.

LLC's and S-corps can also have lines of credit. That is NOT something that is of the specific province of a C-Corp.

My advice to you, is that unless you are entertaining a multimillion dollar operation where LARGE personal asset protection is a MUST, you'd be better served doing an LLC.. or a series of LLC's.

Answer 2

Having all of those businesses under one entity is foolish.

What you'd be better off doing is having a separate structure for each business. You can have one corporation own another, but you should separate businesses. In fact, if you own two rental properties, you should have separate entities. That way, if one develops a problem (in other words, a lawsuit) you don't lose the ones that aren't having a problem.

Now, why do you want to form a C corp? Is there some particular reason you want to be taxed twice on the same income?