Incorporating online is fast and easy when you hire IncFast to prepare your paperwork, pay the fees and submit the articles to the state for approval. We will file your corporation for you, monitor it for approval, and also send you the approved state paperwork once it is completed. Ordering is simple and most people finish in just a few minutes. Once we receive your order, we do all of the work to form your corporation.
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A corporation is the designation and creation of a particular kind of business entity type. What makes the corporation unique from other business entities is its inherent tax structure and limited liability protection of the corporations assets. Essentially, when you form a corporation, you are forming an entity to do business on your behalf. The corporation is the vehicle through which shareholders (the owners of a corporation) conduct business. Ownership of a corporation is broken up into shares. How much a the corporation is owned by a particular shareholder depends on how many shares they own.
Limited Liability
Another aspect of a corporation is limited liability. This means that should a corporation be held liable in a lawsuit, theoretically, only the company’s assets could be at stake—not the shareholders’ personal assets. Limited liability for a corporation is a privilege and not a guarantee. In many cases, the courts have decided to hold shareholders, directors, employees, or officers accountable for the actions of the corporation. When you form a corporation you must comply with all state and federal requirements if you wish to maintain a good standing for your corporation.
Corporate Maintenance
For many years, the corporation was the most reliable, securest way to do business safely in America. Since then, the LLC has become the business entity of choice as it doesn’t have many of the corporation’s formal maintenance requirements like annual shareholders meeting and negates the need for corporate resolutions when altering some aspect of the business. However, corporations are still widely used today. Incorporating offers tax advantages, reduces risk of running a business, and has other great benefits. After you form a corporation you will have new responsibilities such as different accounting, new taxable issues, as well as annual paperwork.
If a corporation is the right choice for your business, let us form your corporation for you today!
Corporations are formed at the state level by filing what is called the Articles of Incorporation with the Secretary of State or Corporations Division in the state where you’re forming your business. The Articles of Incorporation are a basic document that provide the state with your business name, registered agent name and address, and often, the names and addresses of the board of directors, as well as other aspects of the corporation being formed.
If you hire IncFast to incorporate your business, we’ll have your Articles of Incorporation completed and filed with the state within 24 hours of placing your order.
The major advantage that once separated corporations from all other entities was that a corporation afforded the shareholders limited liability. However, now you can form LLPs, LLCs, LPs, even LLLPs, and those entities also provide different types of asset protection. However, corporations still have very specific advantages over other entities:
When talking about how corporations are taxed, you will inevitably come across the term double taxation. Double taxation refers to the corporate tax structure. Corporations are first taxed on their net profits, then once those profits are distributed to the shareholders, the shareholders pay personal income tax on their share of the profits—hence, double taxation. Corporations have the option, however, of keeping profits in the company and investing in the company rather than distributing profits, which no other entity can do. This taxation structure is what is referred to as a C corporation tax structure. Corporations can also elect to be taxed as an S corporation.
An S corporation is simply a tax election. Both LLCs and corporations can choose to be taxed as an S corporation. Generally, an S corporation does not pay income tax. However, its income, deductions and credits are passed through to its shareholders. On their tax returns, the shareholders of a S corporation include their share of the corporation’s separately-stated items of income, deduction, loss, and credit, and their share of income or loss in the business. A S corporation must file Form 1120-S, the tax return for an S corporation, under the following conditions:
The process of starting a corporation is the same in most states, but each state will require different information about the corporation being formed. The general incorporation process is as follows:
If you hire IncFast to start your corporation, we’ll complete all the necessary paperwork in one day and ensure you are aware of all state initial reporting and tax requirements.
While Articles of Incorporation incorporate a business, the most important document for the corporation is not filed with any state. This document is called the Corporate Bylaws, they are in effect the laws by which the corporation operates. Bylaws set forth how profits and losses will be shared, daily operations, chain of command, how often directors and shareholders meet, how the bylaws can be altered, shareholder requirements, dissolution protocol, all the little things that go into running a corporation.
At IncFast, when you hire us to start your corporation, we include all necessary organizational documents with every formation package we offer. Other incorporation websites use this as leverage to force you into paying more. With every client, we try to make the business formation process as fast, simple, and understandable as possible.
Incorporate Fast Inc. wants you to succeed in all your business endeavors. Wherever we can help you succeed, we will.