Determining if a Company is a Corporation
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Check the Name
- States require names to end with “Corp.” or “Incorporated” to show it is a corporation.
- Look up if it has a board of directors or filed articles of incorporation with the state.
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Tax Status and Classification
- C corporations are common; they are set up to be taxed separately.
- LLC can pay taxes as an S or C Corporation, Partnership, or Sole Proprietorship.
- LLC can be an S Corp for tax purposes.
- S and C Corporations differ in tax treatment and shares structure.
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Researching Corporation Status
- Check state’s corporations registry.
- Contact the state’s business division to verify corporation status.
Understanding Corporation vs. Company
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Corporate Details
- Corporations have identifiers like “Corp.” or “Incorporated” at the end of their names.
- Check the board of directors and filing status with the state.
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Tax Class
- LLC can be an S Corp or C Corp for tax purposes.
- To become an S Corp, file form 2553 with the IRS and receive a formal letter.
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Shares Structure
- Check charter documents, shares structure, and annual report filings to determine S Corp or C Corp status.
Checking Company Registration
- Verification Process
- Confirm registration with the state department of business.
- Request the company’s registration reference number.
Comparing LLC and Corporation
- Legal Structure
- LLC provides liability protection and can be taxed as a corporation or partnership.
- LLC is simpler to form and maintain than a corporation.