What is a Corporation?
A Corporation is a legal entity that is formed at the state
level to separate a business owner from his or her business.
When transacting business as a Corporation the owner’s
personal assets are protected from any court ruling against
the Corporation.
Why should I incorporate?
The most important reason to incorporate is that it legally
separates the business from the individuals who own or operate
it. If a court judgment is entered against the Corporation,
you stand to lose only the money that you have invested in
the Corporation. Generally, as long as you have acted in your
corporate capacity (as an employee, officer or director) and
without the intent to defraud creditors, your home and personal
bank accounts and other valuable property can not be touched
by a creditor who has won a lawsuit against your Corporation.
How long will it take to form my Corporation?
The processing time of incorporation varies from state to
state. The filing time is completely dependant on the state’s
workload of unprocessed filings. Click
here
to get an approximate filing time.
What is an S-Corporation?
The S-Corporation status is a federal election that allows
the business owner to receive the limited liability of a corporate
shareholder but pay income taxes on the same basis as a sole
proprietorship. The gains or losses of the company are reported
on the shareholder’s personal income tax return (pass-through
taxation). The S-Corporation only files an informational tax
return reporting the percentage of the corporate income that
each shareholder receives.
In which state should I incorporate my business?
You are not required to form your Corporation in the state
where you will be transacting business although must companies
do. Some companies decide to form their Corporations in states
that do not have corporate income tax such as Nevada or Delaware.
If you do decide to incorporate in another state then you
will have to apply for a certificate of authority as a foreign
Corporation in the Corporation’s state of operation.
What is a Registered Agent?
A registered agent is a person assigned by a Corporation to
accept services of process and any other important documents
from the state’s office. Virtually all states require
the your Corporation must list a registered agent who is located
at a physical street address and is available during normal
business hours. You may act as your own registered agent.
What are directors and officers?
The directors manage the business and affairs of a Corporation
and are appointed by the Corporation’s shareholders.
Officers are appointed by the board of directors and are responsible
for the daily operation of the Corporation. Common officer
titles are president, vice president, secretary, and treasurer.
Often with small businesses, one person will act as shareholder,
director, and officer. In almost all states, only one director
and/or officer is required.
How many shares of stock will my Corporation need?
Shares represent the ownership of your Corporation and not
its size. It is a common misconception that if you authorize
1,000,000 shares with a par value of $1.00 per share then
your Corporation will be worth $1,000,000. This is not so.
When authorizing the amount of shares you are basically telling
the state how you want your Corporation’s ownership
to be divided. A very common amount for small businesses to
authorize is 1,500 shares with a par value of $1.00 per share.
This means that your Corporation has the authority to issue
1,500 shares at a minimum of $1.00 per share.
What is the publication service fee?
Some states require that a notice of incorporation be published
in a local newspaper. These states include: Pennsylvania,
Georgia, Arizona, and Nebraska. Once your Corporation becomes
filed and active we will then file the correct notification
in your local newspaper.
What is a Employer Identification Number?
An Employer Identification Number (EIN) is a number given
to your Corporation by the federal government for taxation
purposes. You can not hire employees or open a bank account
in your Corporation's name without obtaining an Employer Identification
Number. Think of it as a social security number for your business.
How do I get started?
If you choose to incorporate through IncLaunch.com then all
you have to do is complete our secure order form. After you
receive your filed incorporation documents you must then hold
an organizational meeting where bylaws are adopted and share
certificates are distributed to shareholders. Our corporate
kit includes all of the information and paperwork needed to
complete this process.
Get
Started Now
