Start setting up your South Dakota C Corporation now - without any obligation. Save all of your incorporation information until you’re ready to incorporate.
MaxFilings competitive pricing is simple and straight forward - it includes all South Dakota fees and other charges. There are absolutely no “hidden charges” to surprise you later. South Dakota C Corporation is recognized by the law as an individual entity, separate from its shareholders (owners), and many times treated as a human being.
South Dakota C Corporation shareholders enjoy limited liability for the debts, obligations and liabilities incurred by the business as well as liability stemming from possible legal action. Protection of shareholders’ personal assets is one of the major reasons South Dakota business owners choose to incorporate. Normally, shareholders cannot lose more than the amount they invested in the corporation. If the corporation goes bankrupt, the shareholders will not be liable for its debts. Should someone sue the corporation and the corporation is found liable, they can take the corporation's property to satisfy the judgment but if that property does not satisfy the judgment, they will not be able to take a shareholder's personal assets, i.e. home, car, or bank account. There are exceptions to shareholders’ limited liability to keep in mind. For example an exception to a shareholder's limited liability occurs when the corporation has recklessly harmed people or has been used to perpetuate a fraud.
South Dakota C Corporation Taxation
South Dakota C Corporation shareholders do not report any of the business income and expense on their individual tax return. The corporation files tax returns and pays its income taxes (at generally lower tax rates than would individuals) while the individual shareholders report and pay personal income taxes only on monies paid them by the corporation.
It should be noted that shareholders are required to pay personal income taxes on income from dividends paid by a C Corporation even though income taxes have previously been paid by the corporation. This leads to what is commonly referred to as “double taxation”.
Why Form South Dakota C Corporation?
South Dakota C Corporations best serve owners who want the limited liability, a more formal business structure, the ability to reduce overall income taxes and accumulate assets in the business, and ways to more easily raise capital.
Official documents must be filed with South Dakota in order to form South Dakota C Corporation. MaxFilings can do this for you. Start setting up your South Dakota C Corporation now >>
Some Points to Consider When Forming South Dakota C Corporation
Owners & Employees
This information is not an attempt to present all you should know when forming a C corporation in South Dakota but rather to present just some of the basic information about South Dakota C corporations. While we make every effort to ensure its accuracy, MaxFilings cannot and does not guarantee that all of the information is accurate or complete and/or current and it should therefore be independently verified. And, as always, you should seek the advice of qualified professionals who are familiar with your circumstances as well as applicable federal and South Dakota laws.
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Wondering what happens after you submit your incorporation order to us? Have questions about using MaxFilings to incorporate your business or form an LLC? Here you'll see basic questions about our system that can help make your experience smooth and hassle-free. FAQ About MaxFilingsSouth Dakota Incorporation Resources