Why form a Louisiana Corporation?
A Louisiana Corporation's main benefit is the liability protection of your personal assets. Every corporation filed in Louisiana provides the individuals associated with the corporation, protection from any lawsuit directed at the company. The mere formation of the corporation creates a separate legal entity away from the individuals owning or running the corporation. There the share holders, owners or directors are not responsible for any debts or obligations incurred by the corporation. There are some other advantages to forming a corporation such as tax benefits as well.
Useful information in naming your corporation
All Corporations formed in the state of Louisiana must have the legal designator of “Corporation”, “Incorporated” or its common abbreviation. Names checked for availability must be distinguishable from corporate, limited liability company and trade names already on file, or reserved, in the Secretary of State's office. Names are also check by various spelling and words spelled phonetically. Such as Cajun vs. Kajun or Excellent vs. X E Lent. No corporate name shall contain the phrase "Doing Business As" or the abbreviation "DBA". The following are prohibited from use in Louisiana business corporate names, except for bank holding companies: bank, banker, banking, savings, safe deposit, trust, trustee, building and/or loan, homestead, insurance, casualty, redevelopment corporation, electric cooperative, and credit union. No corporation shall use the word insurance in its name except for an independent insurance agency or brokerage. Lastly, the names of revoked Louisiana corporations and limited liability companies are not available for a three year period after the date of revocation.
Do I need a Registered Agent?
A Registered Agent role is to be served process from the Secretary of State in the event of a lawsuit. The registered agents requirements is that it must be an individual over the age of 18, must be a resident of the state where the company is filed, and the address be a physical address. If a registered agent can't be provided, there are companies that can fill this role. Every state must have a registered agent.
Do I need a notary?
Yes, the documents that we prepare for you do in fact require notarization. There are several signatures that need to be notarized on the articles. You will need to have a certified notary to notarize your documents.
What is an S Corp?
Every corporation that is set up in the state of Louisiana is automatically set up as a C corporation. The IRS does provide a separate filing that can change this tax structure to a S Corp. Form 2553 accomplishes this change in structure. The S Corp structure is similar to that of a LLC which as "pass through" taxation. Consult your CPA to see what the best option is for your company. This tax structure may have benefits of tax savings. Consult your CPA to see if you would benefit from a S Corp status.
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