Corporation Set-Up

LLC Formation

Firstly CONGRATULATIONS on taking the first step on making your dream a reality!

 

What is A LLC?

The company is defined as a Limited Liability Company. In the United States, LLCs provide the personal liability protection of corporations with the pass-through taxation of sole proprietorships and partnerships.

LLCs are the easiest way of structuring your business to protect your assets in the event your business is sued.

Members of LLCs may include a single individual or a group of people, known as LLC “members.” An LLC with a single owner is referred to as a single-member LLC; and an LLC with more than one owner is known as a multi-member LLC.

Why Should I Form A LLC?

Making your business a limited liability company (LLC) helps:

  • Protection against lawsuits
  • Avoid double taxation for your company
  • Improve the credibility of your business with customers and creditors
  • Paperwork is less than for corporations and other legal entities

In contrast to sole proprietorships and general partnerships, LLCs can protect your personal assets. The good thing is that LLCs are easy to set up and maintain, and they’re not subject to double taxation.

Business Services

LLC Formation

Silver

Core Features for a Low Price
$ 289
  • Prepare & File Articles of Organization
  • Unlimited Name Searches
  • FREE Registered Agent Service for One Year!
  • Includes States Filing Fee

Platinum

Full Service @ Best Value
$ 492
  • EIN Number Free
  • D-U-N-S Application
  • Operating Agreement
  • Banking Resolution
  • Free Doman & Business Email Service
  • Includes States Filing Fee
Limited Offer

Gold

Get your business off to a good start with our comprehensive features
$ 368
  • EIN Number Free
  • D-U-N-S Application
  • Operating Agreement
  • Banking Resolution
  • Free Domain & Business Email Service
  • Includes States Filing Fee

 CORPORATION Formation

 

 

The Definition of a Corporation?

When it comes to establishing the legal structure for your small business, you can incorporateWhile this can be advantageous to your company, there are a few disadvantages that you should be aware of.

In order to help you decide if incorporating is the right decision for your business, we consulted with legal experts about the types of corporations and the benefits and drawbacks of incorporating. In the United States, a corporation is defined by the state as both a legal entity and separate from its owners (also known as shareholders).

Corporations can be owned by individuals and/or companies, and the ability to buy and sell stock makes ownership easy. As a legal entity of its own, a corporation can engage in legal action on its own, protecting its owners from personal liability in litigation. Follow the laws of your state. Among these requirements are establishing corporate bylaws and preparing financial statements requirements include an application for incorporation Putting together all the information you need to file your articles of incorporation can take weeks or even months, but as soon as they are filed with your secretary of state, your business becomes officially incorporated. The process of preparing all the information to send your articles of incorporation to your secretary of state can take weeks or even months, but as soon as you submit them, your business is recognized as a legal corporation.

Corporations: How Do They Operate?

In a corporation, each owner’s assets are protected from liability because it is a separate legal entity. a corporation can conduct any lawful business and can take any legal action to conduct that business, such as entering into contracts, owning assets, borrowing money, hiring employees, suing, and being sued. A corporation is governed by a board of directors elected by the shareholders. 

Based on the number of shares they hold, each owner of the corporation generally owns a percentage of the company. Shares of a corporation are easily acquired or sold, so the ownership of a corporation can be easily transferred. The benefits of this are especially significant for business continuity and sustainability.

Why Should You Form a Corporation?

Several reasons as to why you SHOULD form a Corporation.

  • Protection of your personal assets to the owners. 
  • Access to Business Capital
  • Tax Benefits
  • Business Security

 

What Are Some of the Disadvantages of Forming a Corporation?

Forming a corporation is not what everyone should do. It could be a lengthy process in a lot of cases. It can also be expensive depending on the structure that you choose.

How Many Types of Corporations are Available?

The types of corporations include C corporations, S corporations, B corporations, closed corporations, and nonprofit corporations.

  • C Corp is by far the most popular. It is taxed as a separate entity on its income.
  • S Corp is a pass-through entity. In other words, the company’s income, losses, credits, and deductions can be passed through to its shareholders for them to report and tax on their individual tax returns instead of the corporation being taxed separately.
  • B Corp meaning a certified benefit corporation. There’s a relatively new type of corporation that’s a seal of approval for S corporations and C corporations, proving they’re dedicated (and legally committed) to bettering society and the environment. It is a rigorous process to become a B corporation, such as scoring 80 points or more on the B Impact Assessment, submitting your scores publicly on BCorporation.net, and making a legal commitment to consider the stakeholders of your organization.
  • Closed Corp meaning private companies – also known as family corporations or incorporated partnerships – are owned by a few shareholders. It may be difficult for these corporations to raise capital because their shares are not publicly traded, but their owners still have the benefit of limited personal liability.
  • Nonprofit Corp A business owner can form a non-profit corporation for religious, charitable, political, educational, literary, scientific, social, or benevolent purposes. The IRS offers tax incentives to nonprofits, including the ability to apply for nonprofit tax-exempt status with the state and federal governments.
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