Forming a corporation in Florida can be a powerful way to grow your business while offering personal liability protection and strong legal structure. There are two main types of corporations: C-Corporations (C-Corps) and S-Corporations (S-Corps). Each offers distinct benefits depending on your goals, business size, and tax strategy.

A C-Corporation is the default corporate structure under federal tax law. It allows for unlimited shareholders, including other entities and foreign investors, and is often the preferred choice for startups seeking to raise capital, issue stock, or eventually go public. C-Corps pay corporate income tax on profits and may also be subject to “double taxation” when dividends are distributed to shareholders. However, they offer strong advantages in terms of attracting investors, offering fringe benefits, and retaining earnings for business reinvestment.

 

          An S-Corporation is not a separate type of entity but rather a tax status that a corporation—or an eligible LLC—can elect by filing IRS Form 2553. S-Corps avoid double taxation by passing income, losses, and deductions through to shareholders, who report them on their personal tax returns. Additionally, S-Corps allow business owners to split income between salary and distributions, potentially lowering self-employment taxes. However, S-Corps are subject to restrictions: they must have 100 or fewer shareholders, all of whom must be U.S. citizens or residents, and only one class of stock is permitted.

 

          At the Law Offices of Adam Farber, we help clients determine whether a C-Corp or S-Corp is right for their business based on their size, tax situation, funding needs, and growth plans. We handle the formation process from start to finish—drafting Articles of Incorporation, corporate bylaws, shareholder agreements, and filing the necessary state and IRS forms. Whether you're launching a tech startup, medical practice, or family business, we’ll make sure your corporate structure is solid and scalable.