The Difference Between an S Corporation & C Corporation

S Corporations and C corporations are two of the most popular business entities when a company decides to incorporate. Once you have incorporated your business, you might want to be an S corp or a C corp. If you are choosing between the two, tax concerns are usually the major basis for making a decision.

Just like a partnership business structure, S Corporations do not pay any federal income taxes. The profits and losses of an S corp are passed through to the stockholders. These people will then report the income and losses on their personal tax return. This process is called single taxation.

C corporations, however, face double taxation. Double taxation means that the C corp pays federal income tax. All dividends paid to the stockholders are also taxed.

It is always best to have a corporate lawyer in California to assist you in deciding what business entity is most suited to your company.

Learn more of the differences between S Corps and C Corps by reading through this article:

Advantages of Being an S Corporation

A major advantage of being an S Corp is that income and losses are passed through to the shareholders of the company, and taxes are paid only once. Thus, double taxation is eliminated. It is important to check the laws and regulations of your state regarding this, because some states do not recognize S Corps and will tax the company just like a regular C corp. There are states that charge S Corps as state tax, even if the company will not have to pay federal income tax.

If your business becomes an S Corp, you as the owner are protected from liability. With S Corps, the personal assets of the owner and the shareholders are separate from the company’s assets.

Accounting is also easier with S corps, because you can simply use the cash method of accounting. It’s perfectly alright if you do not have any inventory. Moreover, with S corps you will have more room for investors. In fact, S corps can have up to 100 stockholders!

Disadvantages of Being an S Corporation

S Corps , just like other business entities, are required to file a number of official and federal documents, including the Articles of Incorporation. The company must also hold regular meeting with their stockholders, and the minutes of these meeting be filed. There are also a number of government fees that have to be met regularly.

There are also shareholder restrictions with S corps. In a C corp, shareholders are taxed only when they receive their dividends. But with S corps, the shareholders are taxed for any income that the company has, even if they have not received any portion of that income. Another restriction is that S corps shareholders are only allowed to issue one class of stack. Many investors can get discouraged by this.

Again, in order to know more about what you’re getting into when it comes to choosing a business entity for your company, it is always best to have a corporate attorney in Orange County, California to assist you.

You Need a Business Attorney to Handle Common Legal Issues in California

All businesses in California will face legal issues; if not now, then eventually. This is why all businesses, whether big or small, should have a corporate lawyer. Corporate lawyers make sure that your business is protected from various kinds of legal troubles. Here are a few of the most common legal issues faced by businesses in Orange County, California.

1. Complaining & Unsatisfied Customers

Dissatisfied customers is one of the most common legal issues faced by businesses in California, and this can be a huge problem, because they can file lawsuits against your company. What’s worse is that most complaining customers gather consumer groups and make a single issue larger than it is. They will sue you over almost anything, from incompetent service to faulty products. Moreover, dissatisfied customers tarnish your company’s reputation, especially if they approach media outlets for their complaints.

You need to have a corporate attorney to handle issues with unsatisfied customers. You are already busy running a company and you cannot overburden yourself by handling legal issues. Have a business attorney in California deal with issues like these, while you focus on running your business.

Wrongfully Terminated Employees

The law provides that you cannot let go of an employee without any final termination forms. Before you terminate incompetent employees, you need to make sure that he signs the necessary documents carefully drafted by your corporate lawyer in Orange County. Your corporate lawyer will make sure that the terms of his dismissal are communicated clearly.

Patent & Copyright Lawsuits

The business world is a very competitive environment. Sometimes it gets too competitive, because other companies will do anything they can to put down their competition. They will look for loop holes in your business and when you do make a mistake, they are quick to file a lawsuit, which will destroy your reputation and ultimately to shut you down. One of the common lawsuits that companies are quick to file are those regarding copyright and patent.

Besides having a business attorney in CA protect you if lawsuits do arise, you also need to make sure that your product development team researches the patents and copyrights of your products thoroughly, so that you can avoid unnecessary problems with your competitors.

The Need for A Corporate Lawyer

All companies, whether big or small, need to have a corporate attorney in California contracted. Not only will they be able to help you when legal issues arise, they also serve a lot of purpose in the company. Corporate lawyers in CA help in preparing contracts, keeping corporate records, and they assist in various legal aspects of a business. Having a corporate attorney in OC, CA contracted will protect your company form potential legal problems in the future.


Wine Cellar Construction a Booming Small Business Market? California and..?

Custom Wine Cellars, the new hot tubs?  Some say they are.  In fact a surprising number of people, both from the end user market and also a lot of those owning commercial small businesses are having a purpose built custom wine room installed.

Commercial Wine Displays & Restaurant Wine Cellars

Some, as in the case of restaurant owners see a cooled and highly visible wine cellar as an opportunity to expand their merchandise into more up-market select wines.  In this economic climate, any opportunity to increase profits without the need to find more customers can be seen as a significant boon.

By creating a stunning wine display highly visible to clients, the overall impression can be that the establishment is one where high quality wine are available.  In interviews with our small business hospitality community it has been suggested that clients will often spend two to three times as much on a bottle of wine if they believe they are sampling something special.

Residential Home Wine Cellar Room Conversions

For home owners too, converting an unused or uninteresting basement room into a beautiful wine cellar can create a visually exciting and unusual feature in their home.  A home feature that can provide direct benefits such as storing and properly aging a wine collection as well as a location for entertainment, or even a wine tasting party.

Wine Room Construction – Strongest Markets

Locations where this market is reported to be particularly strong are reported to be in Los Angeles, Orange County, San Francisco, California, New York & New Jersey, South Florida particularly Miami and West Palm Beach.  Also Chicago, Illinois & Dallas in Texas.

Wine Cellar Builders – Small Local Businesses with Focus

Custom wine cellar builders and wine refrigeration construction contractors are often general builders, finished carpenters and HVAC engineers who have discovered this exciting and growing niche to focus on.  Being a general builder or contractor in growth times can be lucrative, however in down markets life can be difficult and many can go out of business.

Smart small business owners can do well if they can find an alternative to general contracting work in a very specific niche, one where they can port their skills to provide services that are in demand.  The value of a narrow niche can be that it may be perceived as very specialized allowing higher fees as well as making it possible for laser targeted marketing.  Focus on marketing of this kind can produce excellent results.

Best of all, the custom wine cellar room conversion market seems all set to keep growing!

Wine Cellar Builders & Suppliers contributing to this article include:
Arctic Metalworks
Custom Wine Cellars Los Angeles
International Wine Accessories
US Cellar Systems
Wine Cellars by Coastal
Wine Cellars International