KPMG Spark Blog
What is the organizational structure of a C Corporation? How do shares work? How many Directors do I need? Get started with this primer.
Most states only require one director, but you are allowed to have more than one listed. Some states use the number of shareholders in the C Corporation to determine the minimum number of directors.
The hierarchy of an C Corporation includes three groups: the shareholders, directors and officers.
* It is very common for C Corporations to only have one shareholder who also serves as the only director and officer.
At the time of incorporation, C Corporations must state the number of shares of stock they wish to issue. The total number of authorized shares is the number of shares to be issued to the shareholders. Shares of stock are certificates of ownership in the C Corporation and each shareholder is issued certificates based their ownership value of the C Corporation.
The par value of a share of stock is its minimum stated value. Common par values range from $0.01, $1.00 or no par. Par value typically does not equal the actual value of a share, this is normally determined by the price that someone is actually willing to pay or it is based on the book value of the company. For public companies, actual value is determined by the price investors are willing to pay for each share on the national exchange.
A C Corporation is taxed at both the corporate tax rate and its shareholders are taxed at the individual tax rates. First, business profits are reported and taxed at the corporate tax rates, any profit distributions made to shareholders in the form of dividends must also be reported as personal income, which would be taxed at their personal tax rate. This is commonly know as double taxation. To avoid double taxation, many business owners choose to make a special tax election with the IRS to be treated as an S corporation.
Hiring a trained bookkeeper ensures that your money is being managed correctly and that nasty surprises don’t catch you off guard.
Wondering what KPMG Spark is all about? Here, we have put together some of the most frequently asked questions we get at KPMG Spark to help you navigate your online bookkeeping experience.
Whether you get your bookkeeping done with a professional—as you get with us at KPMG Spark—or you do it all on your own, there are important things you can do to make it easier for you and your bookkeeper. Here, we will outline three leading practices for bookkeeping we recommend to our clients.
Learn the differences between the cash and accrual accounting methods and see how your online bookkeeper can help you keep up on all your online accounting demands.
The appeal of doing your own bookkeeping is perhaps obvious: not having to pay someone else to do it for you. But the important thing to consider when you are thinking about doing your own bookkeeping or outsourcing it is what you are losing from taking that time from your business.
Stay on top of what you should know about attracting and retaining a millennial workforce, and KPMG Spark, a small business CPA firm, will help you stay on top of your online accounting and bookkeeping. This blog's author is a millennial and the content therein represents the views of the author.
In any kind of economic downturn, small businesses are often hit the hardest. It’s now more important than ever to be creative and find ways to make your customers happy.
As an online bookkeeping company, KPMG Spark has experience to help you understand your position in the business lifecycle of a startup that just might help you stay a bit ahead of the game.
Use these tips to help manage your small business payroll and remember, KPMG Spark facilitates payroll and and offers invoicing services in addition to online accounting services.
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