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 Biddeford, ME

Orientation to Incorporation in Biddeford, ME


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 ME 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 ME 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 Biddeford, ME
Honeth, Naomi H - Joe Bornstein Law Offices
193 Main St
Biddeford, ME 04005
(207) 284-9787
Insurance Attorneys, Attorneys, Social Security & Disability Law Attorneys, Personal Injury Law Atto
Bernstein Andrew J
193 Main St
Biddeford, ME 04005
(207) 282-9374
Attorneys
Benoit II Henri A
193 Main St # 105
Biddeford, ME 04005
(207) 282-9374
Attorneys
Frignoca Ivy L
193 Main St
Biddeford, ME 04005
(207) 282-9374
Attorneys
Honeth Naomi H
193 Main St # 105
Biddeford, ME 04005
(207) 282-9374
Attorneys
Harris Alan M
193 Main St # 105
Biddeford, ME 04005
(207) 282-9374
Attorneys
Miller David R
193 Main St
Biddeford, ME 04005
(207) 282-9374
Attorneys
Timmins Talia D
193 Main St
Biddeford, ME 04005
(207) 282-9374
Attorneys
Gregory Karin
215 Main St
Biddeford, ME 04005
(207) 571-9365
Attorneys
Furman Gregory Deptula
215 Main St
Biddeford, ME 04005
(207) 571-9365
Attorneys, Legal Service Plans
Vaughn Robert
193 Main St
Biddeford, ME 04005
(207) 622-8791
Attorneys
Maloy Linda A
407 Alfred St # 104
Biddeford, ME 04005
(207) 284-8499
Attorneys, General Practice Attorneys, Legal Service Plans
Pomroy Anne C
407 Alfred St # 104
Biddeford, ME 04005
(207) 284-8499
Attorneys, Legal Service Plans
Gardner Scott D Atty
5 Washington St
Biddeford, ME 04005
(207) 283-8495
Attorneys
Angers Stewart M
5 Washington St # 27
Biddeford, ME 04005
(207) 283-8442
Attorneys, Legal Service Plans
Houde Scott M
13 Crescent St
Biddeford, ME 04005
(207) 571-8187
Attorneys, Legal Service Plans
Edgecomb Diane M
407 Alfred St # 104
Biddeford, ME 04005
(207) 839-8168
Attorneys
William T. Bly
50 Adams St
Biddeford, ME 04005
(207) 571-8146
Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys, Traffic Law Attorneys
WTB Law
50 Adams St
Biddeford, ME 04005
(207) 571-8146
Attorneys
Hull Law Office
409 Alfred St # 2
Biddeford, ME 04005
(207) 282-7100
Attorneys, General Practice Attorneys
Rancourt Craig J
13 Crescent St # 100
Biddeford, ME 04005
(207) 282-6949
Attorneys, Legal Service Plans
Joseph Mekonis Law Office
2 Main St # 17-302M
Biddeford, ME 04005
(207) 283-6610
Attorneys, General Practice Attorneys, Legal Service Plans
Mekonis Joseph
25 Pool St
Biddeford, ME 04005
(207) 283-6610
Attorneys, General Practice Attorneys
Nichols Matthew
110 Main St
Biddeford, ME 04005
(207) 283-6400
Real Estate Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US