Chapter 4 - What Legal Form Works Best For You - Selecting The Form Of The Organization
Joseph W. Bartlett, Special Counsel, McCarter & English LLP, Co-Founder of VCExperts
McCarter & English LLP
2002-08-02
When a business plan is developed, consideration must be given to the form in which the business is to be conducted. The several possibilities start with a general business corporation, sometimes referred to as a "C Corporation" for that sub-chapter of the Internal Revenue Code (Sub-chapter C) that governs the tax attributes of corporations generally. The C Corporation is the residual norm, elected after the other alternatives have been eliminated; the old reliable to which planners turn after exotic formats have been considered and rejected. Before focusing on the corporate form in detail, a discussion of the alternatives is in order.