Easy Questions  
Free Legal Documents

Orientation to Incorporation in Alberta, VA

Orientation to Incorporation in Alberta, VA


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 VA 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 VA 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 Alberta, VA
Shaheen Arthur V
1123 Celebration Ave # 204A
Moneta, VA 24121
(540) 297-8904
Attorneys, Legal Service Plans
Bondurant Jr Thomas
3600 Douglasdale Rd
Richmond, VA 23221
(804) 278-8900
General Practice Attorneys, Attorneys, Legal Service Plans
Flax Robert L
8 S Sheppard St
Richmond, VA 23221
(804) 355-8425
Attorneys, Legal Service Plans
Steingold & Mendelson
3101 American Legion Rd Ste 23
Chesapeake, VA 23321
(757) 393-7300
Employee Benefits & Worker Compensation Attorneys, Attorneys, Labor & Employment Law Attorneys, Malp
Chester Francis
3581 Churchville Ave
Churchville, VA 24421
(540) 337-7278
General Practice Attorneys, Attorneys, Legal Service Plans
Page & Assoc
2913 Park Ave
Richmond, VA 23221
(804) 353-6166
Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys,  Insurance Attorneys,  Product L
Chiocca Michele
3500 Grove Ave # 108
Richmond, VA 23221
(804) 254-5600
Accident & Property Damage Attorneys, Attorneys, Personal Injury Law Attorneys, Legal Service Plans,
Eubank, Stephen R - J Thompson Shrader & Assoc
330 S Main St
Amherst, VA 24521
(434) 946-5161
Attorneys, Legal Service Plans
Gilbert Law Firm Pc
13595 Booker T Washington Hwy
Moneta, VA 24121
(540) 721-5110
Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law
Silverman Law Firm LC
3415 Floyd Ave
Richmond, VA 23221
(804) 325-4992
Accident & Property Damage Attorneys, Medical Malpractice Attorneys, Product Liability Law Attorneys
Wright Jr E M
3RD Courthouse Sq
Buckingham, VA 23921
(434) 969-4809
Attorneys, Legal Service Plans
Swartz Margaret
3600 Floyd Ave
Richmond, VA 23221
(804) 254-4599
Attorneys, General Practice Attorneys
Ramos Mark E
901 N Hamilton St
Richmond, VA 23221
(804) 254-4522
Attorneys, Legal Service Plans
Herbert E. Maxey Jr.
PO Box 257
Buckingham, VA 23921
(434) 846-4333
Attorneys, Legal Service Plans
Pendleton Garrett & Henderson PC
230 S Main St
Amherst, VA 24521
(434) 845-4218
Personal Injury Law Attorneys, Wrongful Death Attorneys, Attorneys
Swiger & Cay
5900 Fort Dr # 101
Centreville, VA 20121
(703) 222-3800
Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
Beckler Michael D
3105 John Wayland Hwy
Dayton, VA 22821
(540) 879-3800
Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Attorneys,  Legal Service Plans
Attorney Charles Havener
3808 Poplar Hill Road, Suite D
Chesapeake, VA 23321
(757) 236-3535
Adoption Law Attorneys, Bankruptcy Law Attorneys, Personal Injury Law Attorneys, Real Estate Attorne
Anderson Desimone & Green PC
74 Scruggs Rd Ste 101
Moneta, VA 24121
(540) 721-3358
Attorneys, Wills, Trusts & Estate Planning Attorneys, Legal Service Plans
Windmueller Esther J
3000 Idlewood Ave
Richmond, VA 23221
(804) 358-2321
Attorneys,  Criminal Law Attorneys,  Appellate Practice Attorneys,  Personal Injury Law Attorneys,  
Williamson & Lavecchia
3415 Floyd Ave
Richmond, VA 23221
(804) 288-1661
Attorneys,  Civil Litigation & Trial Law Attorneys,  Business Law Attorneys,  Insurance Attorneys,  
Berg Legal Clinic
3126 Western Branch Blvd
Chesapeake, VA 23321
(757) 483-0303
Attorneys, Legal Service Plans, Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US