12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
Get the Wisconsin Legal Documents You Need in Only Minutes!
  • Written by expert Attorneys
  • Guaranteed for your State
  • Personalized for your situation
  • Finish and print in minutes!

Guide to Incorporating your Business in Wisconsin

Guide to Incorporating your Business in Wisconsin


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.
 
Download & Print a Free WI Last Will Personalize This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Download & Print a Free WI Living Will Personalize This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
  Answer Easy
Questions
answer simple questions online step by step
Easy Questions, Instant Documents
  • Finish in Minutes
  • Download Immediately
  • Written by Attorneys
  • 100% Guaranteed
  Get Instant Legal
    Documents

Print, save or email your finished legal document immediately!
Last Will & Testament
Related Legal Services in Wisconsin
King Legal Group
7500 W State St
Milwaukee, WI 53213
(414) 302-9999
Attorneys, Legal Service Plans
Kasieta Robert
7818 Big Sky Dr # 112
Madison, WI 53719
(608) 662-9999
Legal Service Plans,  Attorneys,  Labor & Employment Law Attorneys,  Corporation & Partnership Law A
Advocate For Probate & Estates
2300 N Mayfair Rd Ste 710
Milwaukee, WI 53226
(414) 774-9999
Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys
Loftus Diane RN, JD
2300 N Mayfair Rd
Milwaukee, WI 53226
(414) 774-9999
Attorneys, Legal Service Plans, Wills, Trusts & Estate Planning Attorneys
Milaeger Law Office
707 W Moreland Blvd # 7
Waukesha, WI 53188
(262) 446-9999
Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Legal Service Plans,  Accident & Property Dam
Phillips & Gemignani
358 W Main St
Waukesha, WI 53186
(262) 544-9998
Attorneys, Divorce Attorneys
Sczygelski & Pangburn Law Firm LLC
713 Wash
Manitowoc, WI 54220
(920) 682-9990
Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Wills, Trusts & Estate Planning Attorney
Connolly Gwendolyn Law Office
826 N Plankinton Ave
Milwaukee, WI 53203
(414) 347-9988
Consumer Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Attorneys
Miller George E
505 S Dewey St Ste 214
Eau Claire, WI 54701
(715) 830-9982
Attorneys
Kreimendahl Charles
1334 Applegate Rd Ste 202
Madison, WI 53713
(608) 270-9979
Social Security & Disability Law Attorneys, Attorneys, General Practice Attorneys
Konopa Photography
6506 W Noss Rd
Beloit, WI 53511
(608) 289-9977
Attorneys
Lewis & Van Sickle
749 State Highway 32
Pulaski, WI 54162
(920) 822-9977
Bankruptcy Law Attorneys, Family Law Attorneys, Attorneys
Payne Mary H
740 N Plankinton Ave # 210
Milwaukee, WI 53203
(414) 276-9959
Attorneys, Family Law Attorneys, Legal Service Plans
Weiss Monte E
7670 N Port Washington Rd Ste 20
Milwaukee, WI 53217
(414) 247-9958
Attorneys
Campion John
704 Park Ave
Racine, WI 53403
(262) 635-9951
Criminal Law Attorneys, Traffic Law Attorneys, Attorneys
Nathaniel D Rothstein Law Ofc
545 E Wells St # 702
Milwaukee, WI 53202
(414) 271-9945
Family Law Attorneys, Attorneys, Legal Service Plans
Rothstein Nathaniel
161 W Wisconsin Ave # 3079
Milwaukee, WI 53203
(414) 271-9945
Family Law Attorneys, Attorneys
Hoelzel Sally A
201 6th Pl
Racine, WI 53403
(262) 638-9945
Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Legal Service Plans
Popken Pamela L
201 6th St
Racine, WI 53403
(262) 635-9944
Attorneys, Criminal Law Attorneys, Legal Service Plans
Arnett Law Offices
529 S Jefferson St # 202
Green Bay, WI 54301
(920) 430-9937
General Practice Attorneys, Attorneys
Barda Eduardo M
11430 W Bluemound Rd
Milwaukee, WI 53226
(414) 276-9937
Attorneys
Harnitz Law Office
404 N Main St
Oshkosh, WI 54901
(920) 456-9933
Corporation & Partnership Law Attorneys, Attorneys, General Practice Attorneys
Walsh & Keating Sc
1505 N Wauwatosa Ave
Milwaukee, WI 53213
(414) 257-9929
Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Estate Planning Attorneys,  Tax Attorne
Hayes & Rothstein PC
324 E Wisconsin Ave
Milwaukee, WI 53202
(414) 291-9911
DUI & DWI Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US