What is a
corporation?
A corporation is a legal entity that
exists separately from its owners. Creation of a
corporation occurs when properly completed articles of
incorporation are filed with correct state authority, and all
fees are paid.
What is the difference between an "S"
corporation and a "C" corporation?
All corporations start as "C"
corporations and are required to pay income tax on taxable
income generated by the corporation. A C corporation
becomes a S corporation by completing and filing federal form
2553 with the IRS. An S corporation's net income or loss
is "passed-through" to the shareholders and are included to
their personal return tax returns. Because income is NOT
taxed at the corporate level, there is no double taxation as
with C corporations. Subchapter S corporations, as
they are also called, are restricted to having fewer than 75
shareholders, who must be individuals (S Corps cannot be owned
by other corps) who are not nonresident
aliens.
How do I know if my name is
available?
We will request your two top
name choices. We will check these as part of your
order. If neither of these is available, we will contact
you for other name
choices.
MyCorporation provides online incorporation
services to business owners in all 50
states.
How do I name my
corporation?
First and most important, we
recommend that you spend some time coming up with a name for
your corporation. Although each state has different
rules concerning the naming of your corporation, the most
common rule is that it must not be deceptively similar to
another already formed company. The corporate name must
include a suffix. Some examples are "Incorporated",
"Inc.", "Company", "Corp." However, your state may
have different suffix
requirements.
What are the benefits of
incorporating?
The primary advantage of
incorporating is to limit your liability to the assets of the
corporation only. Usually, shareholders are not liable for the
debts or obligations of the corporation. So if your
corporation defaults on a loan, unless you haven't personally
signed for it, your personal assets won't be in
jeopardy. This is not the case with a sole
proprietorship or partnership. Corporations also offer
many tax advantages that are not available to sole
proprietors.
We can explain the many
benefits of incorporating, especially the protection of
your home and other personal assets. Click here to
learn these many important benefits...Incorporate
with us and protect your
home.
Some other advantages include:
·
A corporation's life unlimited
and is not dependent upon its members. If an owner dies or
wishes to sell their interest the corporation will continue to
exist and do business.
·
Retirement funds, qualified
retirement plans (like 401k) may be set up more easily with a
corporation.
·
Ownership of a corporation is easily
transferable.
·
Capital can be raised more easily through the sale
of stock.
·
A corporation possesses centralized
management.
What is a Registered Agent?
Most every state requires a
corporation have registered agent and that agent must have a
physical location in the formation state. The registered
agent can typically be any person (usually a resident of the
state) or any properly registered company who is available
during normal business hours to receive official state
documents or service of process (law suit).
MyCorporation can answer all of your
questions and recommend the best way to protect your business
as well as your personal assets.
How many Directors/Shareholders do I
need?
Most states allow for one
person to act as shareholder, director, and all officer
roles.
How many shares of stock and what par value should
I choose?
We provide a default of 200
shares, although you can choose any amount you want on all
orders. Your par value is not requested on all orders,
and is usually expressed as "No Par Value" or some dollar
amount per share such as "$1.00" or "$0.10."
Some states require that you do not issue your stock for less
than the par value. Some states also base their fees on
the number of shares authorized multiplied by the par
value.
What is a Federal Tax Identification Number or
EIN?
Your corporation is required to
have an Employer Identification Number (EIN) also known as
your Federal Tax Identification Number so that the IRS can
track payroll and income taxes paid by the corporation.
But, like a social security number, an EIN is used for most
everything the business does. Your bank will
require an EIN to open your corporate bank
account.
We provide two EIN
services:
Basic EIN
Service - We prepare and email your SS4 (EIN
application) & easy one-page instructions for obtaining
your EIN. You need only review, sign and fax or call in
the information to the IRS to get your
EIN;
Full EIN Service - We
actually obtain your company's EIN for you.
What do I need to do AFTER I
incorporate?
You must have your initial
shareholder(s) meeting to elect your director(s), if your
director(s) haven't been designated in the articles.
Then, you must have your initial organizational meeting of
your directors. At this meeting, you will need to elect
your officers; adopt your company's bylaws; and issue your
stock (among other actions).
Please click the banner
below and get started in
the necessary incorporation process to protect you business as
well as yourself. This outstanding firm is a leader in the
field and provides the services that you expect and
deserve!
.jpg)
