Starting a new Iowa corporation to limit liability
The most common reason that small businesses form a corporation is to limit the overall risk of running a business in Iowa. These risks can be in the form of lawsuits, debts, etc. and corporation provides a separate legal entity that is separate from the individual owners and shareholders.
Other common reasons for forming an Iowa corporation are tax advantages, as well as providing revenue through the sale of stock in the corporation.
Things to note in naming your Iowa corporation
An Iowa corporate name must meet certain criteria for name approval. The name of the entity must end in "corporation", "incorporated", "company", or "limited", or the abbreviation "corp.", "inc.", "co.", or "ltd." The corporation must not contain any words stating or implying that the corporation is organized for a purpose other than that permitted by Iowa statutes and its articles of incorporation. The corporations name must be distinguishable upon the records of the secretary of state.
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