Domestic Corporation

A domestic corporation is a corporation that is created or organized under the laws of the United States or a state of the United States. Domestic corporations are subject to the laws of the state in which they are organized, as well as federal laws.

Domestic corporations can be either C corporations or S corporations. C corporations are taxed at the corporate level and then shareholders are taxed on any dividends they receive. S corporations are taxed as pass-through entities, which means that the income and losses of the corporation are passed through to the shareholders' individual tax returns.

Domestic corporations can also be either publicly traded or privately held. Publicly traded corporations are corporations whose shares are traded on a stock exchange. Privately held corporations are corporations whose shares are not traded on a stock exchange.

There are a number of advantages to forming a domestic corporation, including:

• Limited liability protection for shareholders
• Ease of transferring ownership
• Ability to raise capital through the sale of stock
• Ability to conduct business in multiple states

However, there are also some disadvantages to forming a domestic corporation, including:

• Higher taxes than other business entities
• More complex filing requirements
• Increased regulatory compliance costs

Domestic corporations are a popular choice for businesses of all sizes. They offer a number of advantages that can help businesses grow and succeed.