Here is some information to assist with understanding the process of filing a new Company.
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What is a Corporation?
A corporation can transact any lawful business in the same way an individual person would be able to. It is a separate and distinct entity. A corporation can enter into contracts, conduct business and can own real and personal property.
Advantages of Incorporating?
The main advantage of incorporating is the protection it provides its shareholders. It is a separate legal entity that incurs its own debts and liabilities that normally are not the responsibility of the shareholders or officers of the corporation. This personal liability protection is one of the main reasons why people file corporations.
What is an S Corporation?
An S Corporation is actually an election that must be completed and filed within 75 days of your Incorporation filing with the IRS. It is a tax status. All corporations are C Corporations until you elect the S status. As an S Corporation the income of the corporation rolls over to the shareholders and the shareholders pay the tax on their personal tax returns. This allows the avoidance of paying corporate tax on the income of the corporation and then paying tax again on the same money when it is distributed as dividends to the stockholders. This avoids double taxation.
Some of the limits of an S Corporation are:
· All shareholders have to be US citizens or have a US taxpayer ID number.
· An S Corporation cannot be owned by another Corporation
· You can not have more then 75 shareholders
· Only one class of stock
This election is for small businesses. It allows you some tax advantages. You can switch from an S corporation to a C Corporation when your business outgrows the limits.
What is a Limited Liability Company?
Limited Liability Company, most commonly referred to, as an LLC is a separate legal entity from the owners. The owner of the LLC’s are referred to as members. Like the corporation, the LLC owners are protected from personal liability.
By default, an LLC is taxed as a pass-through entity. The profits and losses of the LLC are passed directly to the members and they pay the taxes on their personal tax return based on their individual tax rates.
What are the advantages of an LLC?
*An LLC has the advantage of being a hybrid between a corporation and a partnership. The main advantage of an LLC is that most states have fewer requirements for an LLC in comparison to a corporation.
*The taxation of a limited liability company is comparable to an S corporation in that the income of the business will rollover to the individual owners.
* An LLC can have an unlimited number of owners
* The owners do not have to be US citizens.
* The LLC can be owned by another LLC or a Corporation.
What is the Filing step by step process?
What is a Tax ID Number?
A Tax ID number is sometimes called Federal ID number or FEIN, number that is issued by the IRS. All banks require that you have a Tax ID number to setup a bank account under the Company name. CourtAccess Centers of America can prepare this form for you and obtain from the IRS. If you already have a Tax ID number for another business or a sole proprietorship you still will need to obtain a new number for your new corporation or LLC.
What is the cost to file LLC or Corporation?
The cost varies from State to State. In Florida the Cost is $290 for a Corporation and $330 for an LLC. The cost will vary depending on the
What is a registered agent?
A Registered Agent is someone who will be responsible to receive any service of process for the corporation or LLC. This person must have a physical address in the state where the business is registered.
Most people will act as their own Registered Agent. If you do not live in the state where your business is located you will have to have someone in that state act as your Registered Agent. CourtAccess Centers can assist you with this.
What is a Corporate or LLC Book or Kit?
The Corporation book/Kit includes 20 custom stock certificates with your corporations name, stock transfer ledger, minute forms for organizational meetings and standard set of bylaws.
The LLC book/Kit includes 20 custom Member certificates with your LLC name, Member transfer ledger, minute forms for organizational meetings, standard operating agreement. Both books include a metal embossing seal and come in a three ring black binder with a slipcase with your name on the binder.
What is Electronic Filing?
We have on-line filing accounts in many states allowing us the ability to file Corporations and LLC’s in 24 hours, in some states they can be filed on the same day. If you want us to file your Incorporation or LLC we will type your Articles and E-mail them to you for your review and signature. We will file them with the Department of State. Your NEW CORPORATION or LLC will be formed within 24 hours. We will E-mailed and mail you a copy of all documents.
Is my corporation or LLC name is available?
Once we have all your information we will do a preliminary check to see if the name is available. If the name is already taken we will contact you about alternatives. You can use any name you want as long as it is available.
CourtAccess Centers and its employees are not Lawyers and cannot and will not give legal advice.