Protect Yourself, Save Money and Be Professional by Forming a Corporate Entity
Many wonder how to define incorporate, define incorporated, about an incorporated definition or an incorporate definition or what does inc mean. Read about C and S corporations in this section to learn more. When you form a corporation states require you to end the entity's name with "Inc" or "Corp" to designate to the public that the entities is a corporation.
Others wonder what does LLC stand for, what does llc mean, what is a limited definition, company definition, limited liability definition, a liability definition or about sunbiz fl. Limited liability in the context of forming a corporate entity means limiting the extent to which you personally, as an individual, are liable for act of the business. Sunbiz is the website which the state of Florida uses for discussion of corporate entities. A limited liability company is discussed in this section of the website.
Why Incorporate or Form an LLC?
Protect Your Money and Home
When you incorporate a business or form an LLC, you protect your money, home and assts.
The business is made a legally separate entity from you personally so that any debts or liabilities that the business accrues don't put your personal money and assets at risk.
For example, if your company gets sued and you lose, you won't lose your personal money, home or car.
Pay Less Taxes
There are often tax benefits in incorporation or forming a limited liability company that allow you to save money by paying less in taxes due to deductions and benefits.
Look Professional to Investors and Your Industry
If you plan to seek investment in your company, have employees, and grow to be more than a one man show, incorporating or forming an LLC is an important step in promoting future business goals and demonstrating to investors and business partners know that you are savvy.
How do I incorporate or form an LLC? Do I have to be a lawyer?
After you spend a few minutes educating yourself on the legal and tax issues, you can certainly form a corporation or form an LLC without a lawyer but with Coollawyer's recommended service, BizFilings, to take you through step-by-step.
Later after you file the initial paperwork, you should consult with your attorney and tax professional to help with you with filing your tax returns and other legal documentation you'll need.
***Start the easy step-by-step process to form your corporation or LLC now online with Coollawyer's trusted service BizFilings.***
Where Should I Incorporate?
States offer various options for incorporation. If you incorporate a business, keep in mind that state taxes and fees vary greatly between states and that you will have to register your corporation as a foreign corporation doing business in any state in which you have an office and are not incorporated - these fees can add up also depending on how many offices you have and other states usually require you to list your officers or members/managers anyhow. If you want to be sure to remain anonymous, you'll need to incorporate in states that do not require public disclosure of officer and directors information - most do. Nevada does not. However, overall, it usually makes the best sense to incorporate in the state in which you create your business and have its main office. While Delaware, Nevada and other states can offer benefits in certain situations, for most small businesses, starting with their own state makes sense. Also, you can always change your place of incorporation later if necessary and when you have more funds.
How Much Is Incorporating or Forming an LLC?
Fees to incorporate a business are typically $500 or less total. This may seem like a lot, but it's nothing compared to the protection of your personal funds and assets and possible tax benefits you might qualify for.
These fees include the state fee for incorporating (usually between $50 and $200), the fee for the incorporator (usually between $100 and $200), the fee for an agent for service (a person or company to receive legal documents on behalf of your corporation), and any state franchise taxes (be sure to check with the Department of Revenue for whatever state you intend to incorporate in). BizFilings, the online incorporator recommended by Coollawyer, charges a very reasonable fee and guides you through the incorporation process so that the process is simplified for you.
How Long Does Formation Take?If you use BizFilings' online service, it can be accomplished relatively quickly and you can monitor the progress online. If you incorporate on your own, you usually must mail in the documents which adds several weeks to the process.
What To Do Before Incorporating
- Read the Coollawyer Article "Naming Your Company or Product". Pick at least two possible names for your company. If one name is taken in the state you choose for to incorporate your business, you may choose a second name or consider incorporation in another state where the name may be available. Be sure to consider the trademark implications of your choice of name.
- Review BizFilings Entity Comparison Table and Information (in the "Learn About Incorporating" section). Determine which corporate form best meets your goals and needs.
- Review BizFilings Detailed State Information (in the "Learn About Incorporating" section). Determine which state best meets your needs and then print out the requirements for that state so you can correctly complete them during the incorporation process and follow them in the future.
- Review the Taxes Involved. Depending on the state, there may be franchise tax and incorporation fees. State taxes and fees vary greatly between states. Keep in mind that you will have to register your corporation as a foreign corporation doing business in any state in which you have an office and are not incorporated - these fees can add up also depending on how many offices you have. Often, it makes the best sense to incorporate in the state in which you create your business and have its main office. While Delaware, Nevada and other states can offer benefits in certain situations, for most small businesses, starting with their own state makes sense. Keep in mind that you can change your place of incorporation later if necessary.
- Consult with an Accountant. Determine the tax consequences of the various entities and their effect on your personal and company's income
- Consult with an Attorney. If you have a more complex scenario with several shareholders, a business of more than a few people and plans for employee stock options or venture capital investment, consultation with an attorney for the incorporation process is important.
What To Do After Incorporating
- Obtain Your Federal Tax ID and Make Your S Corporation Election If Desired. You can do this on your own by downloading the information from the IRS website, www.irs.gov or have BizFilings handle it for you. It typically takes from 3 to 14 days, depending on whether its e-filed or mailed to get a Federal Tax ID. S Corporation Election must be completed within a few months after incorporating, so be sure to promptly get and read the IRS documents carefully to determine your deadline.
- Open Your Bank Account. After you receive your certificate from the state, articles of formation and Federal Tax ID for your company, you can proceed to the bank to open an account for the corporation or LLC. Be sure to bring these documents with you to the bank.
- File Follow-up Documents. Some states require filing of followup documents within a certain number of days of incorporating. Be sure you are aware and comply with those obligations. Also, be sure to take your articles to your county office and get a business license for your county.
- Consult with an Attorney and Tax Professional at Least Once a Year. To complete your company's minutes, annual meeting and other corporate procedures, have an attorney aid you in completion of these documents.
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LEGAL ARTICLES ARE NOT A SUBSTITUTE FOR AN ATTORNEY AND ARE NOT LEGAL ADVICE.
ALWAYS CONSULT AN ATTORNEY BEFORE USE OF LEGAL FORMS
AS THE LAW CHANGES WITH TIME AND JURISDICTION.
Judith Silver, author of the articles and information on this site, is located in FL, and is an attorney licensed in FL, CA, NY and TX .
(c) 2000-2020 Coollawyer LLC
Privacy Policy / Contact Us
ALWAYS CONSULT AN ATTORNEY BEFORE USE OF LEGAL FORMS
AS THE LAW CHANGES WITH TIME AND JURISDICTION.
Judith Silver, author of the articles and information on this site, is located in FL, and is an attorney licensed in FL, CA, NY and TX .
(c) 2000-2020 Coollawyer LLC
Privacy Policy / Contact Us