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 67460

Orientation to Incorporation in Zip Code 67460


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 KS 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 KS 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 67460
Pyle Law Office
207 N Main St Suite 203
McPherson, KS 67460
(620) 241-9000
Attorneys,  Wrongful Death Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law At
Karstetter & Klenda
100 W Kansas Ave
McPherson, KS 67460
(620) 241-8800
Civil Litigation & Trial Law Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Bankruptcy Law
Bina Brian L
100 W Kansas Ave
McPherson, KS 67460
(620) 241-8800
Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
Kaufman TY
122 W Marlin St
McPherson, KS 67460
(620) 241-7950
Attorneys, Legal Service Plans
Mills William S
900 N Main St # 1
McPherson, KS 67460
(620) 241-7333
Attorneys, Legal Service Plans
Sprague Dale M
121 W Marlin St # 400
McPherson, KS 67460
(620) 241-7112
Attorneys
Mills Michael T Chartered
111 E Marlin St
McPherson, KS 67460
(620) 241-7007
Attorneys, Legal Service Plans
Sizemore Law Office
903 Canadian Dr
McPherson, KS 67460
(620) 241-6471
General Practice Attorneys, Attorneys
Johnson & Kinzel
1210 N Walnut St
McPherson, KS 67460
(620) 241-5825
Attorneys, General Practice Attorneys
Johnson & Kinzel
1016 N Main St
Mcpherson, KS 67460
(620) 241-4533
Attorneys, Legal Service Plans
Sizemore Hadley
1016 N Main St
McPherson, KS 67460
(620) 241-4533
Mediation Services,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Arbitration Services,
Nathan Sandy Law Office
1766 Chisholm Rd
McPherson, KS 67460
(620) 345-3275
Attorneys, Mediation Services, Arbitration Services
Emler Jay S
1233 N Main St
McPherson, KS 67460
(620) 241-2910
Attorneys
Adoption Law
120 W Kansas Ave
McPherson, KS 67460
(620) 241-1611
Attorneys, Adoption Services, Legal Service Plans
Pemberton Mark A
120 W Kansas Ave Ste B
McPherson, KS 67460
(620) 241-0554
Attorneys, Legal Service Plans
Houston Jeffrey A
120 W Kansas Ave # B
McPherson, KS 67460
(620) 241-0554
Attorneys, Legal Service Plans
Christiansen Bret T
120 W Kansas Ave # B
McPherson, KS 67460
(620) 241-0554
Attorneys, Legal Service Plans
Bremyer & Wise
120 W Kansas Ave
Mcpherson, KS 67460
(620) 241-0554
Attorneys
Law, Casey R - Wise & Reber Lc
120 W Kansas Ave # B
McPherson, KS 67460
(620) 241-0554
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Family Law Attorneys,  Divorce Attorn
Koger Randee
120 W Kansas Ave # B
McPherson, KS 67460
(620) 241-0554
Attorneys
Assurance Title Service
100 W Kansas Ave # 201
McPherson, KS 67460
(620) 245-0272
Title Companies,  Attorneys,  Escrow Service,  Real Estate Title Service
Price Jr Gary L
121 W Marlin St # 202
McPherson, KS 67460
(620) 241-0024
Attorneys
Boyer & Price+ Law Office, P.A.
121 W Marlin St Ste #202
McPherson, KS 67460
(620) 241-0024
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US