A C corporation is the default type of corporation that provides “limited liability” — that is, it limits your personal liability for business debts. However, there’s more to creating and running a corporation than filing Articles of Incorporation. You’ll need to keep good corporate records and, in order to retain your limited liability, you must follow corporate formalities involving decision making and record keeping.
One of the main advantages of incorporating is personal assets are protected from creditors of the corporation. For instance, if the corporation gets sued and has a judgment against it, you personally do not have to pay, i.e. forced to use personal assets such as your house, to pay the judgment. The plaintiff could only go after corporation’s assets.
For more information on C Corporations call us at 503.222.9057 or contact us online today.