The fact that AC Corporation is susceptible to double taxes is one of its key drawbacks. As a result, the corporation must first pay taxes on its profits before the shareholders can pay taxes on the dividends they receive. The corporation’s and the shareholders’ profits may be significantly reduced as a result. An S Corporation, on the other hand, is only taxed once, at the level of the individual shareholders.
The quantity of paperwork and legal obligations that accompany AC Corporation is another drawback. AC Corporations must adhere to several federal and state requirements, hold regular board meetings, and keep thorough records. This can be expensive and time-consuming, especially for startups and small firms with limited funding.
S Corporations, on the other hand, are typically simpler to maintain and have less regulatory restrictions. Additionally, they provide more freedom in terms of ownership and profit sharing. These factors influence the decision of many small firms to file as S Corporations.
The procedure to register your business name is rather straightforward if you are opening a new company in Oklahoma. By submitting an application for trade name registration, you can register your company name with the Secretary of State of Oklahoma. There is a $25 charge and this application can be submitted either online or by mail. Once your company name has been registered, you are free to utilize it for all business-related endeavors.
The answer is yes if you’re also wondering whether you must file a DBA (Doing Business As) in Oklahoma. All businesses that conduct business in Oklahoma under a name other than their legal name must register as DBAs. The County Clerk’s office in the county where your business is situated is where you can complete this registration.
In conclusion, although though AC Corporation has a lot going for it, there are also drawbacks. Due to its tax advantages and flexibility, registering as a S Corporation may be more advantageous for small firms. It’s simple to register your business name and DBA in Oklahoma, and you can do it online or by mail. Before deciding on a business structure that is ideal for your company, it is crucial to thoroughly weigh all the possibilities and requirements.