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Corporations have an easier time finding financing than partnerships and sole proprietorships because they offer a formal structure to investors and lenders. Investors know how much they own of a corporation by the number of shares they purchase and lenders know that the corporation’s formal structure requires more checks and balances than the other business [...]
Tue, September 25 2007 » Business Loans, Business Structures, Corporation, Find Investors » 4 Comments
An S-Corporation’s earnings will pass through to your income taxes (no double taxation). However, you will have to maintain all the business records and comply with state regulations.
Owners of an S-Corporation pay FICA on shareholders’ salaries, but do not pay for distribution of profits and earnings. The S-Corporation shareholder does not pay self-employment taxes on [...]
Tue, September 25 2007 » Business Structures, Corporation, Taxes » 2 Comments
Setting up as an S-Corporation allows you to have the limited liability of the regular corporation and the pass-through taxation of a sole proprietorship or a partnership. In other words, you pay taxes from corporate income on your personal income taxes. Nowadays, for a small entrepreneur, it is more convenient to set up a Limited [...]
Tue, September 25 2007 » Business Structures, Corporation » 1 Comment
Tax Forms for Corporations
For informational purposes only, always consult your tax professional!
Your corporation will have to file separate taxes; a corporation will be viewed as a separate entity by the IRS and will pay taxes independently, so company earnings will be subjected to double taxation—one time at the company level, and another at the personal [...]
Tue, September 25 2007 » Business Structures, Corporation, Taxes » 1 Comment
The following is for informational purposes only, always consult with your legal or tax professional
Protecting Limited Liability
The corporation is characterized as a separate entity and can offer liability protection to the owners, if the owners adhere to the following corporate formalities:
The corporation maintains business records and transactions separate from the owners.
The owners manage the corporation [...]
Tue, September 25 2007 » Business Structures, Corporation » 2 Comments
It is important to separate the identity of the corporation from its owners. This will help you protect your limited liability status.• Make all annual filings with the Secretary of State.
Operate the company under its name, making sure that the people doing business with your company know that the company is a [...]
Tue, September 25 2007 » Business Structures, Corporation » 3 Comments
The following is for informational purposes only, always consult with your tax or legal professional
In order to maintain all the benefits of corporation status, the owners need to do the following:
The corporation needs to hold annual meetings between shareholders and directors.
All major transactions need to be recorded in the corporate minutes.
The corporation directors must [...]
Tue, September 25 2007 » Business Structures, Corporation » 1 Comment
You should have written minutes for occasions when there is a board of directors’ meeting or shareholders participation. Documenting all these key decisions in written minutes will allow you to protect your limited liability status because you will have documentation available if creditors, the courts, or the IRS questions management decisions. Keep written minutes for:
• [...]
Tue, September 25 2007 » Business Structures, Corporation » 1 Comment
In this section, we will discuss the different roles of the organization’s members—the shareholders, directors, officers, and employees.
Shareholders
Shareholders are the people who own stock in the corporation; these people can:
• Approve the dissolution of the organization.
• Modify the articles of incorporation and regulations.
• Support mergers and reorganizations.
• Appoint or remove the board of directors.
• Consent [...]
Tue, September 25 2007 » Business Structures, Corporation » 1 Comment
There are 4 ways you can incorporate, this is by no means an exact list, it is only some information that I’ve compiled, always check with your legal, or financial professional.
Using an “incorporating company” will cost $50 to $200 extra, but these companies will register your business and, depending on the package you buy, even [...]
Tue, September 25 2007 » Business Structures, Corporation » 1 Comment
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