Question 1

Does my business need to file as a C-Corp?

Accepted Answer

Only if you've incorporated and not made an S-Corp election, or have specific reasons to be taxed as one. Most owner-operated small businesses are better served by an LLC, S-Corp election, or partnership — a C-Corp is the exception, not the default.

Question 2

What is double taxation, and how much does it actually cost?

Accepted Answer

The corporation pays tax on its profit, and then you pay tax again on whatever comes out to you as a dividend. The actual cost depends on your specific numbers and how much you're distributing versus reinvesting — we model it rather than quote a rule of thumb.

Question 3

Can a C-Corp still pay its owners a salary?

Accepted Answer

Yes — officer compensation is a deductible expense to the corporation, unlike a dividend. It's a different mechanism than an S-Corp's reasonable-compensation rules, but it still matters to get right.

Question 4

When does a C-Corp actually make sense for a small business?

Accepted Answer

In specific situations: outside investors who require it, qualified small business stock treatment, certain benefit structures, or heavy reinvestment where profit isn't being distributed. We'll tell you if that's genuinely your situation before recommending it.

Question 5

Do you handle the state-level C-Corp return too, not just federal?

Accepted Answer

Yes — state corporate returns are prepared alongside the federal 1120, including North Carolina's corporate income and franchise tax.

C-Corp Tax Preparation in Raleigh, NC

A C-Corp is the exception, not the default

What we handle for a C-Corp client

1120 Preparation

Double-Taxation Planning

Owner Compensation

Estimated Payments

Frequently Asked Questions

Get a fixed-fee quote for your C-Corp return