Did You Know?Facts for New Businesses1) Professions that require a license (such as doctors, lawyers, architects, accountants, or engineers) are usually required to form a Professional Corporation (PC) or Professional Limited Liability Company (PLLC) when incorporating. 2) If you are conducting business as a partnership or sole proprietor, your house, car, and personal savings are at risk! The absence of a legal entity structure means you are personally liable for all business debts. Forming an LLC or Corporation will add a layer of protection for your personal assets. 3) Statistics tell us that an estimated 50,000 lawsuits are filed every day in the United States. Forming a Corporation or LLC will limit your liability and help protect your personal assets. 4) Businesses set up as a Limited Liability Company (LLC) issue membership interests in lieu of traditional shares of stock. 5) Owners of a Limited Liability Company are also called members. LLC members can either be other companies, or individual people, including non-US citizens or non-US residents. 6) The benefits of incorporating in Delaware or Nevada, instead of your home state, may be substantial for your business. You are not required to live in the state where you form your entity and other states may be cheaper options. You are however, required to "qualify" to do business in every state where you will conduct business. CorpAmerica can assist you with filing a qualification in any state. 7) Businesses that choose to be an S Corporation start out as a standard C Corporation and need to submit IRS Form 2553 to receive special tax filing status which then makes the new company an S Corporation. 8) Businesses set up as an S Corporation are not taxed on their profits. Instead, profits and losses are passed through to the shareholders to be taxed on their individual returns. 9) Businesses set up as S Corporations are limited to one type of stock offering and they are also limited to 100 shareholders. Also, all shareholders in an S Corporation must be U.S. citizens or legal U.S. residents. 10) Many businesses choose to incorporate in Nevada for various benefits. The directors of a Nevada corporation do not need to be stockholders. Stockholders, directors and officers do not need to live or hold meetings in Nevada, or even be U.S. citizens. CorpAmerica can assist you with forming a corporation or LLC in Nevada for as little as $49 plus state fees. 11) When choosing a name for your business entity, representatives at CorpAmerica and the office of the Secretary of State can provide you with assistance in determining the availability of your chosen name. 12) All small businesses can incorporate. One person may hold all officer or director positions in a single owner corporation. That same person may also be the sole shareholder. 13) You must follow your states rules and regulations for maintaining a business in "good standing" in order to preserve the benefits of incorporating. This includes protection of your personal assets. 14) Failure to maintain a registered agent can result in loss of "good standing" for your business and jeopardize your ability to legally enter into contracts. Losing good standing status could also put your personal assets as risk. 15) To open a business bank account, most banks require you to first obtain a Federal Employer ID Number (also called a TIN or EIN). The EIN serves as a tax identification number for the IRS. CorpAmerica can obtain an EIN on behalf of your business. 16) Incorporating is an important step to protect your personal assets. Also, your vendors and customers are likely to view your small business with more credibility and trust after you add "Inc." or "LLC" to your business name. 17) Selecting and registering a Web site domain name early in the incorporation process will ensure its availability when you are ready to promote your business online. 18) You can substantially reduce your chances of an IRS audit by filing your business as an LLC or Corporation. A recent study indicates that sole proprietors are almost 10 times more likely to be selected for an audit. 19) You must file a "Doing Business As" (DBA or fictitious name) filing with each local jurisdiction where you conduct business when using any name other than the original name designated in your Articles of Incorporation or Certificate of Formation. CorpAmerica can assist you with a DBA filing in any state. 20) Delaware is our most popular state of formation for small businesses. Delaware is unique in that it has the "Court of Chancery" to resolve legal disputes timely and inexpensively. We can form your Delaware corporation or LLC for as low as $49 plus state fees. 21) Delaware corporations can be converted to LLCs and vice versa, unlike some other states. CorpAmerica can assist you with incorporating your business in Delaware for as low as $49 plus any state fees. 22) Nearly all businesses need some form of county or local license. A general license allows the business owner to operate within the guidelines of the state, county, or local municipality. CorpAmerica can assist with researching the right licenses and permits for you. 23) CorpAmerica has been providing quality service to its customers since 1995. Already a leader in our field, we offer the most competitive prices anywhere. Contact us today to incorporate your business quickly and realize the most savings. 24) There is no minimum investment required to form a Delaware Corporation or LLC. CorpAmerica can set up your small business in Delaware for as low as $49 plus state fees. 25) Many small businesses choose to incorporate in Nevada for the tax benefits. There is no corporate income tax, no taxes on corporate shares, and no franchise tax in Nevada. CorpAmerica can form your Nevada corporation or LLC for as little as $49 plus state fees. 26) More than 50% of Fortune 500 companies are incorporated in Delaware. CorpAmerica can set up your small business as a Delaware corporation or LLC for as low as $49 plus any state fees.
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