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!
 
 

Guide to Incorporating your Business in Zip Code 33710

Guide to Incorporating your Business in Zip Code 33710


The great corporations of this country were not founded by ordinary people. They were founded by people with extraordinary intelligence, ambition, and aggressiveness.
 
- Daniel Patrick Moynihan


A corporation refers to a group of people authorized to operate as a single entity. It is managed by a board of directors who administer its general affairs.

Forming a Corporation

For a corporation to exist, "Articles of Incorporation" are filed with the Secretary of State. In some states, this document is known as "Certificate of Incorporation" or "Certificate of Formation."

Different Types of Corporations

The main difference relates to the two ways an IRS allows a corporation to be taxed: "C Corporation" and "S Corporation."

C Corporation

In a "C Corporation" corporate income (1st tax) is the source of its corporate tax. Then it will distribute the profits of the corporation to its shareholders who are liable to pay taxes out of those dividends (2nd tax). This is referred as double taxation because the C Corporation is taxed on two levels.

S Corporation

A corporation that elects to be treated as a pass-through entity is referred to as an "S corporation." All corporate income is "passed-through" to the shareholders directly, who in turn list the income on their individual tax returns. An "S Corporation" is not subject to double taxation and its accounting is easier than a "C Corporation."

Benefits of Forming a Corporation

A corporation can help reduce your taxes. It can also protect your assets. It can also shield you from liability for losses of a business. Without the corporate veil, you would have to pay the debts of the businesses you owned out of your personal assets. In a corporation, however, you are shielded from this liability, so more people are willing to invest in this type of business venture. Presently, corporations have become the standard for many business entities.

Tax Advantages of Corporations Income Shifting

A "C Corporation" even with its double taxation, can still offer tax flexibility because of income shifting. You can use income shifting to take advantage of lower income brackets. For example, raising or lowering the owner's salary can shift income from the "C Corporation" to the owner giving the owner flexibility to choose the ideal tax bracket for the corporate entity and for personal taxes.

Sole Proprietorship and Partnership

Corporations have a lot of advantages and only some disadvantages over partnerships and sole proprietorships.

Advantages:

• Corporate shareholders are not liable for corporate debts.

• Corporations offer self-employment tax savings

• Corporations have continuous life

• Corporations make raising money easier

• Transferring the ownership interests of a corporation is easier

Disadvantages:

• Sole proprietorship and partnership cost less to establish

• Minimal formalities required for sole proprietorship and partnership

• Sole proprietorship and partnership are not accountable for unemployment insurance

Corporation vs. a Limited Liability Company

Limited liability company (LLC) combines the simplicity of a partnership and personal liability protection of a corporation with the tax benefits.

Advantages of a corporation over LLC:

• Corporation profits are not subject to Social Security and Medicare taxes

• Corporations garner greater acceptance

• Corporations can offer a greater variety of fringe benefits with fewer taxes

• Corporations lower taxes through income shifting

Advantages of LLC over a corporation:

• LLCs have fewer corporate formalities

• LLCs have no ownership restrictions

• LLCs have the ability to deduct operating losses

• LLCs have tax flexibility

Choosing a State for Incorporation

Most people want to establish business in their home state. It would be practical to check if your home state has a high corporate tax or high state fee. You can do business elsewhere if that is the case in your chosen state. Business involves more than just selling products; it requires having active presence and or occupying an office.

Procedures for Forming a Corporation in a Particular State

Most states have the same basic process for incorporating. Variations will be on state filling fees, bylaws, continuing obligations, and formation requirements.

Foreign Corporations

A Foreign corporation refers to the registration of a corporation in each state where they do business outside of their state of incorporation. This process is called foreign Qualification.

Managing the Corporation

Approving major business decisions are done by the board of directors who manages the corporation. Directors are elected by the shareholders and hold office for a limited term. Here must be at least one director in a corporation. Some of the procedures approved by the board of directors include:

• Declaration of dividends

• Setting the terms of employment of the elected officers

• Amending the articles of corporation and bylaws

• Corporate transactions involving mergers and reorganizations

Owners of a Corporation

The ultimate owners of the corporation are the shareholders or stockholders. They don't have the right to direct the daily activities of the corporation yet they have the right to share the profits of the corporation, elect directors, and vote on major corporate actions.

In order to elect directors, a corporation is required to hold annual shareholders' meeting. If not all shareholders are present, the meeting can still go on through a conference call or by letting shareholders signed the approved actions as discussed during the meeting.


Corporate Stock

Corporate stocks have two levels, the common stock and the preferred stock. Common stock is the most basic level of stock and it is the ownerships' share in a corporation accompanied by the rights to vote on corporate policy and management. It is the usually the only kind of stock with the voting rights.

Shareholders and Directors for a Corporation

To run the company, a corporation should have at least one director and one shareholder.

Appointing Corporate Officers

Corporations have at least three officers: a president, a treasurer or financial officer and a secretary. These officers are appointed by the board of directors to run the day-to-day operations of the corporation. They don't have to be shareholders or directors; in most cases the same person can hold all offices.

Required Officers for a Corporation

A corporation must have a president, secretary and treasurer in most states. In most cases, one person can hold all three offices.

How Corporations are Taxed

A corporation, being a separate legal entity, submits their tax return each year with the IRS. If the corporations' fiscal year ends in December 31, tax returns are due on Mach 15. Tax return must be filed even if it does not have a tax due or income. C corporations file their tax returns using the Form 1120 or 1120A. S corporation are not required to pay federal taxes at corporate level but they still must prepared a separate tax return using Form 1120S.
 
Personalize & Print a Free FL 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 FL 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 33710
Bowdish Michael Esq
3275 66th St N
Saint Petersburg, FL 33710
(727) 381-9522
Criminal Law Attorneys
Melissa R Sharpsteen and Associates
6675 38th Ave N Ste 102
Saint Petersburg, FL 33710
(727) 381-9522
Personal Injury Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Bankruptcy Law Attorneys,  Esta
Sharpsteen Melissa R
6675 38th Ave N # 102
Saint Petersburg, FL 33710
(727) 381-9522
Attorneys, Legal Service Plans, Personal Injury Law Attorneys, Criminal Law Attorneys, Bankruptcy La
Beverly, Thomson Shaw PA
5001 9th Ave N
Saint Petersburg, FL 33710
(727) 327-9222
Elder Law Attorneys
Banks Carole A Pa
5001 9th Ave N
Saint Petersburg, FL 33710
(727) 328-9103
Family Law Attorneys
Baughman Jeff
6570 30th Ave N
Saint Petersburg, FL 33710
(727) 623-9048
Construction Law Attorneys, Attorneys
Glass Roy L
5501 Central Ave
Saint Petersburg, FL 33710
(727) 384-8888
Accident & Property Damage Attorneys, Attorneys, Corporation & Partnership Law Attorneys
1-866-Its Over
6474 1st Ave N
Saint Petersburg, FL 33710
(727) 822-8818
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Employer Solutions of Florida (ESFL)
6810 22nd Ave N
Saint Petersburg, FL 33710
(727) 827-8200
Employee Benefits & Worker Compensation Attorneys
Gross Michael J
31 54th St N
Saint Petersburg, FL 33710
(727) 341-8087
Family Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
Hoppe Lisa A
5999 Central Ave # 200
Saint Petersburg, FL 33710
(727) 327-7800
Attorneys Referral & Information Service, Attorneys
ALTEN & CANGRO, ATTORNEYS
3346 49th Street North
Saint Petersburg, FL 33710
(727) 498-7770
Bankruptcy Law Attorneys,  Labor & Employment Law Attorneys,  Attorneys,  Family Law Attorneys,  Gen
Roberts Law Firm, PA
6574 30th Ave. N.
St. Petersburg, FL 33710
(813) 367-7767
Personal Injury Law Attorneys, Bankruptcy Law Attorneys, Criminal Law Attorneys
Morse J Stanford
3131 66th St N # 2
Saint Petersburg, FL 33710
(727) 347-7737
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Michael W. Porter, Attorney
535 49th St N
Saint Petersburg, FL 33710
(727) 327-7600
Elder Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys, Guardianship Services
O'Brien Kathryn M
31 57th St N
Saint Petersburg, FL 33710
(727) 345-6647
Civil Litigation & Trial Law Attorneys, Attorneys
Cameron Law Firm
1210 66th Street North
Saint Petersburg, FL 33710
(727) 498-6434
Wills, Trusts & Estate Planning Attorneys,  Divorce Attorneys,  Bankruptcy Law Attorneys,  Family L
Yanchuck Berman Wadley & Zervos PA
5453 central ave
Saint Petersburg, FL 33710
(727) 822-6313
Personal Injury Law Attorneys, Attorneys, Legal Service Plans
Jeanette Secor PA
6474 1st Ave N
Saint Petersburg, FL 33710
(727) 502-6183
Accident & Property Damage Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Wrongful Death At
Jeanette Secor Law Office
6474 1st Ave N
Saint Petersburg, FL 33710
(727) 502-6183
Attorneys, Family Law Attorneys, Divorce Attorneys, Personal Injury Law Attorneys, General Practice
Deeb & Durkin Pa
5999 Central Ave # 202
Saint Petersburg, FL 33710
(727) 384-5999
Attorneys, Construction Law Attorneys, Entertainment & Sports Law Attorneys, Legal Service Plans, Li
De Berg Benjamin G
1915 Tyrone Blvd N
Saint Petersburg, FL 33710
(727) 344-5573
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Fisher Gregory H
5520 1st Ave N
Saint Petersburg, FL 33710
(727) 344-5520
General Practice Attorneys, Attorneys
Johnson Morris E
7315 3rd Ave N
Saint Petersburg, FL 33710
(727) 345-5466
General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US