12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Orientation to Incorporation in Zip Code 95715

Orientation to Incorporation in Zip Code 95715


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.

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 CA Last Will Create 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 CA Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Zip Code 95715
Christopher J Lauria
1605 W Olympic Blvd # 9011
Los Angeles, CA 90015
(213) 427-9742
Attorneys, Legal Service Plans
Okabe & Haushalter
1934 Divisadero St, Ste 100
San Francisco, CA 94115
(415) 483-9708
Open Daily 24 Hours, 24 Hour Emergency Service Available
Engel Julius
1600 Sacramento Inn Way # 125
Sacramento, CA 95815
(916) 515-9693
Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
Pacific Coast Legal Service
1832 Tribute Rd
Sacramento, CA 95815
(916) 923-9651
Attorneys Support & Service Bureaus
Pro Legal
1706 S Figueroa St
Los Angeles, CA 90015
(619) 338-9600
Attorneys Support & Service Bureaus
Nelson & Schwab
1420 River Park Dr
Sacramento, CA 95815
(916) 564-9588
Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law
Maid Lisa L
1111 S Grand Ave # 101
Los Angeles, CA 90015
(213) 745-9511
Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
Maki Lisa
1111 S Grand Ave # 101
Los Angeles, CA 90015
(213) 745-9511
Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
Uchiyama Karen Y
1441 Baker St
San Francisco, CA 94115
(415) 563-9300
General Practice Attorneys, Attorneys, Legal Service Plans
Gohari Steve
1625 W Olympic Blvd
Los Angeles, CA 90015
(213) 251-9090
General Practice Attorneys, Attorneys
Los Angeles LDA Services
1625 W Olympic Blvd
Los Angeles, CA 90015
(213) 351-9090
Attorneys Support & Service Bureaus
Jacob Emrani
1516 S Broadway
Los Angeles, CA 90015
(888) 820-9050
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Labor & Empl
Oficina Juridica Guatemanteca
1609 James M Wood Blvd
Los Angeles, CA 90015
(213) 249-9015
Paralegals, Legal Document Assistance
Doustkam & Associates
1625 W Olympic Blvd
Los Angeles, CA 90015
(213) 480-8844
Bankruptcy Law Attorneys,  Bankruptcy Services,  Attorneys,  General Practice Attorneys
A1 Rapid Docs
1600 Sacramento Inn Way
Sacramento, CA 95815
(916) 972-8779
Family Law Attorneys, Attorneys
Adelson Testan Brundo & Popalardo
1515 River Park Dr
Sacramento, CA 95815
(916) 481-8775
Attorneys, General Practice Attorneys, Legal Service Plans
The Long Beach Attorney
2201 North Lakewood Blvd., Suite D
Long Beach, CA 90815
(562) 436-8700
Immigration Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Business Law Attorneys,  General Pr
A B C Citizenship & Immigration Ctr
1605 W Olympic Blvd
Los Angeles, CA 90015
(213) 381-8680
Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
Gade Elizabeth Inc
1900 Point West Way Ste 208
Sacramento, CA 95815
(916) 648-8600
Social Security & Disability Law Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service
Chernick Pauline
1605 W Olympic Blvd # 9020
Los Angeles, CA 90015
(213) 739-8520
General Practice Attorneys, Attorneys
Rimac & Martin
1051 Divisadero St
San Francisco, CA 94115
(415) 561-8440
Attorneys, General Practice Attorneys
Amendola Robert & Associates-A Law Corporation
1451 River Park Dr
Sacramento, CA 95815
(916) 924-8258
Wrongful Death Attorneys,  Personal Injury Law Attorneys,  Accident & Property Damage Attorneys,  Au
Sacramento Bankruptcy Center
1555 River Park Dr
Sacramento, CA 95815
(916) 515-8187
Bankruptcy Services,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
Williams Stephanie L
1420 River Park Dr
Sacramento, CA 95815
(916) 927-8112
Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Mediation Services,  Child Custody Attorneys,
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US