Corporations

A corporation is a business in which shareholders exchange money, property or both for the business’s capital stock. The corporation then pays taxes and distributes (any) profits to shareholders. Anyone, regardless of immigration status, may incorporate as a corporation. The most common corporation types are S-Corporations and C-Corporations.

 

S-Corporations

S-Corporations cannot have a nonresident alien (for tax purposes) as a shareholder. The corporation passes profits and losses through shareholders so the business is not taxed.

C-Corporations

C-Corporations limit liability of directions, shareholders employees and officers. Legally, the business’s obligations do not get passed on to the personal debt of any individual sso with the business. Most corporations are C-Corps.