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 55126

Orientation to Incorporation in Zip Code 55126


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 MN 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 MN 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 55126
Hoglund, Chwialkowski & Mrozik, P
1611 County Road I W C W B W
Saint Paul, MN 55126
(651) 628-9929
Social Security & Disability Law Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorn
Kensy Sandra K
5430 Carlson Rd
Saint Paul, MN 55126
(651) 494-9463
Attorneys, Legal Service Plans
WL Brown Law Office
1380 Viewcrest Road
Shoreview, MN 55126
(612) 309-9184
Senior Citizens Services & Organizations, Estate Planning, Probate, & Living Trusts, Elder Law Attor
Fowler Law Firm
3252 Rice St # 2
Saint Paul, MN 55126
(651) 287-8883
General Practice Attorneys, Attorneys
Speckmann James E
505 Tanglewood Dr
Saint Paul, MN 55126
(651) 777-8141
Attorneys, Legal Service Plans
Mary Ebb Law
1935 County Road I W B2 W
Saint Paul, MN 55126
(651) 340-6517
Adoption Law Attorneys, Attorneys, Family Law Attorneys
Riach Ronald J/Franke & Riach PA
1000 County Road E W
Saint Paul, MN 55126
(651) 636-6400
Attorneys, Legal Service Plans
Ronald R. Redlinger
4570 Churchill St Suite #140
Saint Paul, MN 55126
(651) 983-6068
Personal Injury Law Attorneys,  Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Legal Ser
Rob Roe Law, LLC
3254 Rice Street
St. Paul, MN 55126
(651) 766-5886
Personal Injury Law Attorneys, Attorneys
Redlinger Law Firm
4570 Churchill St # 140
Saint Paul, MN 55126
(651) 765-1312
Personal Injury Law Attorneys, Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US