How to form a C-corporation for Construction and Repair
If you’re considering starting a construction or repair company, there are a number of steps you’ll need to take. These include researching laws, hiring employees and training them, and managing your finances. However, one of the most important steps is registering your business as a C-corporation in order to protect yourself from any liability issues that might arise. Here are the few simpler and easier steps you may follow to form a C-corporation for your construction and repair business.
Prepare to form a C-corporation
You’ll need to work out the idea of forming a C-corporation.
- What is a C-corporation? A corporation with shareholders and directors, this type of business structure gives you more control over your company’s finances.
- What is the difference between an S-corporation and a C-corporation? In an S-corporation, your profits pass through to shareholders’ personal income taxes as “pass-through and come on their personal returns. This means that you don’t pay corporate tax on them, but your business does have to pay its own taxes. An S corporation also limits ownership to 100 individuals or other entities (such as LLCs). With a standard C corporation, profits pass through to the shareholders’ personal income tax returns and they’re taxed at their individual rates instead of being taxed at corporate rates as they would be in an S corporation.
Name your business
- Keep it short. The name should be easy to pronounce, spell and remember.
- Avoid negative connotations. Think twice before using offensive words or phrases in your company name—you don’t want to offend anyone!
- Make sure it doesn’t sound like someone else’s brand or trademarked product or service. If you’re not sure if your proposed business name is already being used somewhere else, check out the USPTO’s Trademark Electronic Search System (TESS), which identifies federal trademarks currently registered with the U.S. Patent and Trademark Office as well as pending applications for marks that might conflict with yours.* Use a domain name that is similar but different from your business name so people can distinguish between them easily online (e.g., if your company is named NewCo Construction & Repair LLC then don’t use newcoconstructionandrepairllc).
Contact the local, state, and federal offices
To get started, you’ll need to contact several offices. Contacting the local, state, and federal offices is recommended in this order:
- Check with your county clerk’s office or building permit department for information on how to file for a business license and other local permits. The penalties for failing to acquire these can be severe (it’s not uncommon for them to double).
- If necessary, gather information from your state’s Secretary of State website about filing fees, tax guidelines, and other requirements before contacting them directly through email or phone calls made during regular business hours—but don’t expect much help after hours unless it’s an emergency situation involving immediate risk of physical harm or death due directly to negligence on their part!
- Federal: It is wise not to bother these people until you’ve exhausted all other options first because they are busy people who have plenty of work already without adding yours onto their plates just because it makes sense logically doesn’t mean anything else does either way so don’t bother trying unless there isn’t any other choice left open instead try calling customer service instead which may take longer but will not cause any problems later down line down road pathways paved surface.
Hire and train employees
As you begin to hire and train employees, you will also want to hire a lawyer, an accountant, and a contractor. You should also hire a project manager, bookkeeper, and marketing manager as well as an HR manager. You will need to inculcate every possible person who may be directly or indirectly involved in your business.
Research the laws
You should start your research by learning about the laws of construction and repair by looking for laws or searching online. The more you know about these regulations, the better off you’ll be when setting up your business. You should and must look after every possible basic legal requirement by yourself.
The next step is to find out how much legal help will cost you. You don’t want to end up in debt because of an attorney!
The key takeaway includes two major key points. One is to hire and train employees and research the laws of construction and repair. Second, you also need to name your company and contact the local, state, and federal offices.
The laws surrounding construction and repair are complex, at the same time regulations that must be followed when running a business. The good news is that with careful planning and research, you can form your own C-corporation without having to worry about legal issues.