Starting An Internet Company

Both forms Corp get the security of a corporate veil. An S corp you will take business expenses and losses out of your personal taxes. Copr CA. have more rules and less flexibility. The best thing to do is to contact an accountant. I had a number of companies over the years and have always opted for an S-Corp. Hope this helps.

www.score.org. Free advice for taxpayers, green card holders and we citizens.

Training 'C' Corporation
A "C Corporation is taxed under Subchapter C of the Internal Revenue Code. As a corporation (a corporation), company C is separate and distinct from the shareholders - the owners of the company. Under the general construction law, no distinction is made between a corporation and a C corporation S. However, both types of corporations are subject to differential treatment of federal and state.
As tax-paying entity, the C corporation must pay taxes on its taxable income prior to distribution of dividends to shareholders. It is allowed to issue more than one type of stock and can have any number of shareholders.
As a separate legal entity, the company's finances and records are established and maintained completely separate and distinct from the finances and records of shareholders. By a resolution passed at a meeting of shareholders held in accordance with the bylaws of the corporation, one or more officers or employees of the company are authorized to do business on behalf of the company. The resolution typically includes an authorization within specified limits to borrow and repay funds as needed for business operations. The person or persons authorized to make arrangements for credit on behalf of the corporation with loan document signatures after the lender has received a certified copy of the resolution authorizing it. If the company is newly formed, small (has few assets), or a credit limited use, it is likely that the lender will require personal guarantees by one or more officers or shareholders before approve an application for credit of the corporation. If personal guarantees are given, the signer (s) usually have unlimited liability for the debts of the company.
The Charter contains information on the company for the purpose (s) for which the corporation is organized and the life of society. (A corporation often has eternal life.) Statutes of the Society are the "rules" for conducting the organizational life of society.
Moderate legal costs are incurred to set up a C corporation, and the annual costs are incurred for general meetings, tax return preparations, and prepare annual reports and other summaries based on business needs and desired by shareholders. Public notice of the formation and maintenance of a society is necessary and is done by filing with the Secretary of State Office.

Depends on the nature of your business online. If you plan to be the only worker, or only some, the S can work for you. But there are ownership restrictions on S that may have problems if and when you grow up.

Have you considered creating an LLC, instead?