BUYING GUIDES..since 1995
|
GALT HOME:
Internet Guides - Finance - Audio/Video - Travel - Household/DIY - Health - Cars - Fashion - Sports - Entertainment - Cell Phones |
| MENU: Technology and Internet Guides | Travel | Health | Household | Sports ...independent online guides since 1995 |
What is a corporation? Forming a corporation - how to incorporateWhat is a corporation? The concept of a "corporation" has been around for centuries. The word corporation comes from the same root word that forms "corpse", meaning "body" or "person". A corporation is simply a legal entity that exists separately from its owners, bestowed with certain legal rights and obligations, much like a person. A corporation exists as a legal entity, regardless of who its owners or employees are. In the United States, corporations are chartered at the state level. To incorporate a business or start a new corporation, you must first decide what state you want to incorporate in. Some states have higher or lower incorporation and franchise tax fees. Some states have more liberal laws in relation to suits filed against corporations. Some states offer other tax advantages to corporate owners.
A long-standing leader in this industry is The Company Corporation. You can form a corporation online using their services. They offer two main incorporation plans. The first, for $199 plus state fees, offers:
Should I incorporate? Benefits of incorporatingSince a corporation is a legal entity outside its owner, it is not tied to the finances or assets of the owner(s), and the owner limits his own personal liability by keeping his personal assets separate from the corporate assets. If the corporation is sued and goes out of business, the owner(s) does not lose his personal assets (in most cases, except in some instance of fraud or other illegal conduct). This limitation of liability is one of the key benefits in choosing to incorporate a business. An owner of a sole proprietorship does not gain this benefit - if he is sued or cannot pay the loans he has taken out for his business, he could lose his home, car, etc. There are often tax advantages to incorporating as well. Many expenses are deductible, and corporate tax rates are sometimes lower than individual rates. Again, consult with a tax attorney for specific tax advice when it comes to incorporating.
A corporation also has an easier time in selling stock and raising capital. Investors also look for the reduced liability that comes from an investment in a corporation. Corporate stock also makes it easier to transfer ownership or liquidate holdings without having to turnover the entire business. Lastly, since the corporation is a legal entity, it exist independent of its owners - in the event of death, the corporation continues to function normally and the ownership stock is simply passed on to someone else.
Do you have a quality site or product that belongs in this guide? We are always happy to evaluate or review new products and websites. Feel free to contact us at the email address below and let us know about you. If you have a demo product you'd like us to look at, please contact us before sending anything. Thank you.
Send email to: galtemail (@) yahoo.com
|
