How to form a C-corporation for Electronics


A C-corporation is a business that has been incorporated in the state of incorporation as opposed to being formed as an LLC or S-corporation. In many cases, a limited liability company (LLC) or Subchapter S corporation may be a better fit for your business needs than a C-corporation because it allows you to pass through losses on your personal tax return and have limited liability protection from lawsuits. However, if you’re looking to raise capital by issuing stock in exchange for investment capital, holding assets like patents or trademarks in corporate ownership, having more than one owner with different percentages of ownership within your business entity structure, or need other advantages offered by corporations such as tax benefits conferred through utilizing separate legal entities then forming a C-corp may be right for your electronics startup needs!

Step 1: Naming the Corporation

When choosing a name for your C-corporation, make sure that it’s unique. If you choose a name that’s too similar to an existing company you’ll run into trouble if the other company decides to sue you down the line.

Do not use names that are too short or long; they are difficult to remember and pronounce correctly. Try not to use generic names like “Inc.,” “Corp.,” or “Co.” as well—that makes them difficult for people to understand what kind of business you’re in when they hear the name over the phone or see it on paper without context clues like numbers after it.

Step 2: Filing the Certificate of Incorporation

The certificate of incorporation is a document that confirms who owns what, and what rights each shareholder has regarding the corporation. This should include:

  • A list of all shareholders, including their addresses and contact information
  • A copy of a resolution passed by board members or managers confirming that the company will operate as a corporation instead of being owned by multiple individuals, which would make it an LLC (Limited Liability Company) instead
  • Any other relevant information required by state law

Step 3: Completing a Corporate Records Book

This is essentially a journal of all actions taken by the corporation. The book should include the date, name of the corporation, and action taken (e.g., “voting for new board members”). Keep this in a safe place and keep it for seven years after dissolution of your business

Step 4: Holding the First Directors Meeting

The first directors meeting is where your newly formed corporation’s directors are elected and corporate bylaws are adopted. This should be held at the principal office of the corporation within 6 months of incorporation, and it must be held in person, not by phone or video conference. You’ll need to elect a president and secretary as well as adopt any other bylaws you’d like to include in your company’s governing documents.

The first directors meeting is also when you’ll need to decide whether you want your company to be managed using unanimous consent or majority consent.

Step 5: Drafting Corporate Bylaws

Corporate bylaws are the rules that govern your corporation. They set out the legal requirements for running a corporation, and they also outline how stockholders can participate in corporate decision-making.

C corporations have two types of bylaws:

  • The articles of incorporation (also called “articles”) are filed with the state when you form your C-corp. This document includes information about where your C-corporation will be located and its purpose. You’ll also need to include information on how many authorized shares you’re offering, along with other basic company details like directors, officers, etc.
  • The bylaws are filed as well—they go into detail about how shareholders can participate in voting on major issues like electing directors and amending corporate documents like articles or bylaws themselves

Step 6: Appointing Corporate Officers and Establishing a Recordkeeping System

You may also want to appoint corporate officers, such as a president, treasurer, and secretary. These positions are optional but can make running your company more efficient and easier for everyone involved. A recordkeeping system is important because it helps you keep track of financial transactions and ensure that taxes are paid in full on time. It’s also important to note that you’ll be required by law to keep certain records in this system for up to seven years after dissolution if your business ceases operations or files bankruptcy.

Step 7: Obtaining Employer Tax Identification Numbers and Opening Bank Accounts

Employer tax identification numbers are required for all corporations, but they’re not the same as social security numbers. Employer tax identification numbers are issued by the IRS and used for tax purposes.

To obtain an EIN, you will need to contact your state revenue department or revenue department of the IRS service center that serves your area and request one. Most states have an online application process, which is convenient and easy to navigate.


The primary benefit of forming a C-corporation is that it provides many legal protections for your business. This includes limited liability protection and the ability to raise money via stock offerings.

It can also help you reduce your tax burden by allowing more income to flow through the business and less through you personally.

The downside to forming a C-corporation is that it requires you to pay higher taxes than if you were operating as an LLC or S-Corp; additionally, investors may want dividends rather than salary from their equity in your company.


In conclusion, forming a C-corporation for electronics is no different than any other business. The steps outlined above should help you get your company off the ground and running smoothly.

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