Your corporation questions, solved.
Incorporating your business is one of the most important steps you will take as a business owner. Here are five reasons why it is important to incorporate.
A corporation (also known as a C corporation) is a separate legal entity created by its owners with the ability to separate personal assets from business liability. A corporation has many of the same rights and abilities that people do. For example, a corporation can buy and sell goods, buy and lease cars / property and apply for loans. A corporation can also own other corporations and can even file for bankruptcy. For years smart business owners have been incorporating to protect themselves and their families from business debts and / or lawsuits.
An S corporation has all the great liability benefits of a C corporation, yet it has a few differences when it comes to taxation. When a business is operated using a C corporation, the owners often run into a problem with “double taxation”. This occurs when the owner pays his/her own personal income taxes along with his corporation’s income taxes. An S corporation eliminates this problem. It allows the business profits and/or losses to “flow through” to the owner’s personal income tax forms. The S corporation does not pay any income tax, therefore leaving the owners to only have to pay their own personal income taxes.
An LLC (Limited Liability Company) provides the personal asset protection of a corporation without all the corporate formalities. An LLC is much easier to create than a corporation and is also much easier to operate and maintain. The fact that there are very few formalities and far less paperwork, makes an LLC one of the top choices for the small business owner.
A Tax Identification Number, otherwise known as a “Federal Employer Identification Number” (EIN), is a number the IRS assigns to your business. This number is very important! Think of a Tax ID as your business’ social security number. It is required to open a bank account, hire employees and obtain corporate credit. Acquiring a Tax ID number can be complicated and time consuming. AAA Corporate Filing Services can obtain your Tax ID / EIN number for only $59.00.
Both are typically pass-through tax entities, and whileS corps must file a business tax return, LLCs only file business tax returns if the LLC has more than one owner. With pass-through taxation, no income taxes are paid at the business level. Business profit or loss is passed-through to owners’ personal tax returns.
A Federal Employer Identification Number (EIN), otherwise known as Tax Identification Number (tax ID)”, is a number the IRS assigns to your business. This number is very important! Think of an EIN as your business’ social security number. It is required to open a bank account, hire employees and obtain corporate credit. Acquiring an EIN can be complicated and time consuming. AAA Corporate Filing Services can obtain your EIN for only $59.00.
It is very important that your business has an EIN (Federal Employer Identification Number). This number is required (in most cases) to open a corporate bank account, obtain corporate credit, or to hire and pay employees. Think of an EIN as your corporation’s social security number. An EIN is required to truly maximize the tremendous potential of your new corporation! Acquiring an EIN can be complicated and time consuming. AAA Corporate Filing Services can obtain your EIN for only $59.00!
Almost every state requires you to submit a report stating any new information or changes in your corporation or its officers. In most states this is called a Statement of Information or annual report. Failure to submit such reports in a timely manner could result in the dissolution or suspension or your corporation. For a small fee AAA Corporate Filing Services can help you avoid such penalties.
How it works:
Order online by filling out AAA Corporate Filing Services “Statement of Information Questionnaire”. After we have carefully prepared your Statement of Information, it would then be sent to you where you’d simply sign and send it to your secretary of state’s office.
NO! While many people do consult legal council in the preparation of their corporation or other legal entity, it is not necessary. Lawyers and CPAs can be very costly! Why not save money by letting AAA Corporate Filing Services’ documentation specialists prepare your legal documents?
Save time and money by calling us toll free at 1(877) 300-7147 or order online and incorporate your business today!
Need your corporation formed fast? We now have expedited filing available for a fee lower than most other filing services. With expedited filing you can now have your corporation or LLC ready in as little as two business days depending upon your home state!
Yes! If you were to use a lawyer or CPA to incorporate your business, it could cost anywhere from $1000 to $3000! AAA Corporate Filing Services will incorporate your business for only $29 (plus state fees)! Why not save money by letting AAA Corporate Filing Services’ documentation specialists prepare your legal documents at a fraction of the cost?
Simply order online, or call us toll free at 1(877) 300-7147 and incorporate your business today!
As soon as AAA Corporate Filing Services receives your order, we go right to work preparing the necessary formation documents and get your new corporation or LLC up and running as soon as possible. Your incorporation documents are usually sent within 24 hours of receipt. Depending on conditions in your secretary of state’s office, your documents may arrive anywhere between 3 to 60 business days. If you need your corporation or LLC formed fast, use AAA Corporate Filing Services’ “expedited filing” to dramatically reduce the turnaround time.
Naming your corporation or LLC is easy. Choose any name you want (excluding the words, “bank” and “trust”) and end it with: “Inc.”, “Incorporated”, “Corp.”, or “Corporation”. Choose two alternates in case your first corporate name is not available in your state. AAA Corporate FilingServices will do a name search on your chosen names starting with the first name and then moving on to the second and third in descending order. We will prepare your documents using the first name we find to be available.
Yes. You can always change the nature of your business after incorporating or forming an LLC. Both corporations and LLCs may perform many different functions and/or own multiple business’s of different natures.
“Flow Through” taxation generally refers to a business owner using an S corporation to avoid paying corporate taxes. The tax is then paid by the business owner by letting the business profits and/or losses “flow through” from the S corporation down to the business owner’s personal income tax statement.
“Double Taxation” occurs when a corporation or LLC generates a profit and pays income tax on the corporate level. The business owner then pays his own personal income tax on the profits and is thus taxed twice. Some business owners opt to file form 2553 with the IRS to convert their corporation to an S corporation. An S corporation eliminates “double taxation” altogether. It allows the business profits and/or losses to “flow through” to the owner’s personal income tax forms. The S corporation does not pay any income taxes, therefore leaving the owners to only pay their own personal income taxes.
If you were to take a company and sell it off piece by piece to the public, you have just issued stock. Stock is broken down into pieces called shares. Shares are worth a percentage of ownership of a company. For example, if a corporation has issued 100 shares of stock, then 1 share is worth 1% of ownership. Stock may be sold to the public in order to raise money for any needs the corporation may have.
Stock is broken down into pieces called shares. Shares are worth a percentage of ownership of a company. For example, if a corporation has issued 100 shares of stock, then 1 share is worth 1% of ownership. Shares may be sold to the public in order to raise money for any needs the corporation may have.
“Par Value” refers to the minimum price in which a share of a corporation’s stock can be sold for. For example, if a corporation has 200 shares of stock with a par value of $1.00 per share, each share of stock may not be sold for less than its par value of $1.00.
You can typically issue as many shares of stock as you would like; although some states require additional fees for corporations issuing excessive shares of stock. By default, each corporation filed with AAA Corporate Filing Services will issue 200 shares with a par value of $.01 unless desired otherwise.
A physical address refers to a location in a state which can be a residence or a business address. It can NOT be a mailbox, mailbox service, or P.O. Box. Most states require a registered agent who has a physical address in the state of incorporation.
No, you cannot. You must use a physical address which can be a business address or residence.
A registered agent is the person who receives all mail and legal notices on behalf of the corporation. Many business owners wish to be their corporation’s registered agent simply because they would like to receive the notifications and emails personally.