How to form a C-corporation for Healthcare

Introduction

Every business needs to be structured as a corporation for legal and tax purposes. In this article, we will go over some of the steps you need to take to form a C-corporation.

Define the purpose of your business

In order to do this, you’ll need to establish the goals of your new corporation and the values that will guide it.

Once you’ve defined these things, ask yourself: “Do I want to be able to sell shares in my company?” If yes, then a C-corporation is probably right for you. In addition to being able to sell shares, C-corporations are also more tax efficient than S-corporations.

Find a name for your business

It’s best to avoid using the same words or phrases as other businesses unless you’re planning on creating some sort of tagline or slogan that will set you apart from them. Keep in mind that brand recognition is important when choosing your company’s moniker; if people don’t recognize what they’re hearing when they hear it said out loud, they won’t remember it later on! So choose wisely!

File a Certificate of Incorporation

A corporation is a business that has been granted legal separation from its owners. A corporation is formed when you file a certificate of incorporation with the Secretary of State, and it becomes an entity separate from the people who own or manage it. This means that it can own property, borrow money, sue, and be sued in court by itself. A corporation can also issue shares (stock) which allow investors to share in any profits earned by the company. Shareholders have no day-to-day control over how their company operates however; only directors and officers can vote on corporate matters at board meetings.

Corporations have many benefits but they also have some drawbacks

One potential drawback for healthcare professionals may be related to taxes; since C-corporations are taxed as regular businesses instead of being taxed as individuals like S-corporations. The tax benefits associated with S-corporations could potentially save you thousands each year if your business generates significant profits. You should check with your accountant or an experienced financial advisor before making such important decisions about your business structure so they can guide you through this process.

Form a Board of Directors

The board is responsible for overseeing the general management of a corporation and making decisions on behalf of shareholders. Directors are nominated by shareholders and then elected by shareholders to serve as directors at annual meetings or special meetings called for that purpose. State laws generally prescribe how many directors a corporation must have, but some states allow corporations to decide this number themselves (called “delegated authority”).

Set up bylaws and corporate records

• Set up a corporate minute book.
• Keep minutes of board meetings.
• Keep a copy of the bylaws.
• Keep a copy of the stock certificates, and make sure they’re numbered consecutively in order to show continuity with each other. (If you create new stock certificates, or if you need to replace lost or destroyed ones, these will not be considered valid.)
• Keep a copy of the corporate seal because it’s important to have one so you can use it on official documents like contracts and leases for equipment or property purchases for your business purposes related to healthcare administration services offered by your corporation (i.e., leasing office space).

Hold the first meeting of the Board of Directors

You’ll want to choose people who are well-suited to their positions and will help you accomplish your goals for the business. This can include professionals with experience in healthcare, non-profits, or other industries that would benefit from selling products or services on a large scale—you may also want regular contributors who share similar interests as yourself. Be sure they’re willing to do the work necessary for running a successful company: attending meetings regularly, reviewing financial statements, providing advice when needed, and so on.

If there are conflicts between members of your board (such as disputes over strategy), try discussing solutions rationally until everyone agrees on what should be done next; if this doesn’t work then seek legal advice from an attorney experienced with business law issues before taking any further action against someone else within your company.*

Issuing Stock Certificates

They are issued when a company is formed, and each certificate can be traded individually on a stock exchange. When you issue stock certificates for your C-corporation, you will need to determine how many shares your investors will receive. The amount of time it takes to issue stock certificates varies by state.

Conclusion

I hope this article has helped you understand the basics of forming a C-corporation for healthcare. If you want to learn more about the process, visit our website and find out what it takes to create your own company.