Easy Questions  
Free Legal Documents

Orientation to Incorporation in Alba, TX

Orientation to Incorporation in Alba, TX


Many companies expect loyal customers without providing loyal service. This has been the visionary failure of countless corporations.
 
- Steve Maraboli


Forming a corporation limits the personal liability for business debts. However, there is more to the creating and running a corporation than doing paperwork. You have to spend your time in the business keeping a good record of all the business activities so that you will not find it hard to handle more complicated tasks like filing a corporate tax return. In terms of limiting liability, you have to be sensible in terms of decision making and record keeping. Getting organized is the key.

How to Form a Corporation

• File an "Articles of Incorporation" at the corporate divisions in the secretary's office of your state government.

• Create a corporate "bylaws" that states the basic rule that govern the ongoing decision or formalities of the corporate life.

• Issue stock certificates of the initial owners or shareholders of the corporation and document the ownership interest or the shares of stock in the business.


To retain the corporate status as a legal, separate entity, certain formalities should be observed by the owners of the corporation. This includes:

• Holding of directors' and annual shareholder meetings

• Minutes of meetings and agreement or decisions should be documented

• Signing of documents by the corporate officers and directors should be done under the name of the corporation

• Bank accounts are separate from the personal accounts of the owners

• Maintain a detailed financial records

• Income tax return should be filed separately

Limited Personal Liability

Personal assets of the people involved in the corporation are protected from the creditors. In cases where a corporation owes a creditor, your personal assets is protected because only corporate assets will be use to pay the debts. The only money you will likely end up losing, is the money you have invested in the corporation.

Exceptions to Limited Liability

There are situations where the owners' personal asset is not protected by limited liability. The owner of the corporation will be held personally responsible if:

• Directly and personally injured another person

• Personally guarantees a bank or business loan which the corporation fail to pay

• Fail to deposit withhold taxes from employees

• Intentionally engage in fraudulent causes that can harm the company

• Treats the corporation like an extension of his personal affairs and not as a separate legal entity

Corporation should be treated as a separate legal entity. This is the very important especially in cases involving court proceedings. The court can rule that the corporation does not exist and the owners should not be shielded from their personal liability for their actions. This is likely to happen if you did not follow the routine corporate formalities such as:

• Adequately investing money in the corporation

• Formal issuance of stock to the initial shareholders

• Holding of meetings regularly of the directors and shareholders

• Keeping a separate business records and transactions from those of the owners


Liability Insurance

Forming a corporation can protect your personal assets but it should not be an excuse for not getting insurance. Insurance can be a good investment that can protect the company from lawsuit and claims. The risk of doing business can be minimized by getting a solid liability insurance policy. Any claims made by the corporation can be covered by the insurance as long as the corporation is also doing its part like paying the bills and other corporate responsibilities.

Paying Corporate Income Tax

Corporate income tax refers to the taxes paid by the corporation on whatever profits they left after it has paid all the available expenses like salaries, bonuses, overhead and other expenses. It uses a tax return form to be filed to the IRS and pay taxes at a special corporate rate tax. In terms of the owner, if he is working for the corporation, he should be paid a salary and possible bonuses like other employees and pay their taxes using their own personal tax return.

Corporation shareholders can choose to elect an S corporation status by filling at the IRS a tax Form 2553. Using this form can mean that the corporation will be treated like a partnership where business profits and loss will be reported on the each shareholder‘s individual tax returns.

 
Personalize & Print a Free TX Last Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free TX Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Alba, TX
Attorney General
1400 Hillcrest Dr
Arlington, TX 76010
(817) 277-9805
Attorneys
Shivers Robert A
1146 S Alamo St
San Antonio, TX 78210
(210) 226-9725
Administrative & Governmental Law Attorneys, Immigration Law Attorneys, Attorneys
Martinez & Martinez
1105 Wooded Acres Dr #200
Waco, TX 76710
(254) 776-9700
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Drug Charges Attorneys,  Child Custod
Cotner Robert
3501 W Waco Dr
Waco, TX 76710
(254) 752-9688
Attorneys
Zimmerman & Zimmerman & Cotner & Young A Professional Corporation
3501 W Waco Dr
Waco, TX 76710
(254) 752-9688
Accident & Property Damage Attorneys,  Attorneys,  Legal Service Plans,  Personal Injury Law Attorne
Zimmerman Law Firm
3501 W Waco Dr
Waco, TX 76710
(254) 752-9688
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Automobile Accident Attorneys
Morris, Michael P - Tekell Book Matthews & Limmer
1221 McKinney St # 4300
Houston, TX 77010
(713) 222-9542
Personal Injury Law Attorneys, Attorneys
Tekell Book LLP
1221 McKinney St Ste 4300
Houston, TX 77010
(713) 222-9542
Attorneys, Legal Service Plans
Book, William C - Tekell Book Matthews & Limmer
1221 McKinney St # 4300
Houston, TX 77010
(713) 222-9542
Insurance Attorneys, Personal Injury Law Attorneys, Attorneys
Clark Dick
3311 N Ridge Dr
Waco, TX 76710
(254) 772-9464
Attorneys
Muizers Martin I
2525 E Arkansas Ln
Arlington, TX 76010
(817) 548-9437
Attorneys Referral & Information Service, Attorneys, General Practice Attorneys
Central Texas Litigation
7215 Bosque Blvd
Waco, TX 76710
(254) 399-9400
Attorneys Referral & Information Service, Litigation Support Services
Kerrisa Chelkowski
1017 South Alamo Street
San Antonio, TX 78210
(210) 228-9393
Criminal Law Attorneys, DUI & DWI Attorneys
Abbott J Perry CPA
609 W Main St
Arlington, TX 76010
(817) 265-9306
Attorneys,  Estate Planning, Probate, & Living Trusts,  Wills, Trusts & Estate Planning Attorneys
Brenda Dushane
12404 Highway 6
Santa Fe, TX 77510
(409) 316-9254
General Practice Attorneys, Attorneys, Legal Service Plans
The Law Office of Wendy L. Hackler
1810 A 8th Ave.
Fort Worth, TX 76110
817-926-9890
Attorneys, Child Support Collections, General Practice Attorneys
Hasdorff & Convery P C
1007 S Alamo St
San Antonio, TX 78210
(210) 738-9060
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Legal Service Plans
Green Neal Jr
110 W Collin St
Corsicana, TX 75110
(903) 874-9009
Divorce Assistance, Attorneys, Family Law Attorneys, Legal Service Plans
Hardin Rusty & Associates PC
1401 McKinney St Ste 2250
Houston, TX 77010
(713) 652-9000
Attorneys, Criminal Law Attorneys, Appellate Practice Attorneys, Litigation & Tort Attorneys, Legal
York Robert Atty
312 W 4th Ave
Corsicana, TX 75110
(903) 874-8890
Attorneys, Family Law Attorneys, Divorce Attorneys, Litigation & Tort Attorneys, Estate Planning Att
Scanes, Routh & James
7901 Fish Pond Rd
Waco, TX 76710
(254) 399-8788
Attorneys,  Accident & Property Damage Attorneys,  Civil Litigation & Trial Law Attorneys,  Real Est
Shields Joel
7901 Fish Pond Rd Ste 200
Waco, TX 76710
(254) 399-8788
Corporation & Partnership Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Legal Service
Anita J Anderson
829 E Guenther St
San Antonio, TX 78210
(210) 533-8726
Attorneys Referral & Information Service, General Practice Attorneys, Attorneys
Aldous Law Firm
11959 fm 1764
Santa Fe, TX 77510
(281) 435-8648
Automobile Accident Attorneys,  Family Law Attorneys,  Litigation & Tort Attorneys,  Medical Malprac
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US