Incorporation is the term denoting the formation of a new corporate firm, whether business or non-profit. It is a legal procedure that involves registering a company name and logo. It is worth mentioning in this regard that Incorporation service of a company has lots of benefits when compared to a company run by an individual or group of individuals.
The first benefit, of course, is that your assets are in stocks owned by the public, and you hold a comparatively lower personal liability. Furthermore this also reduces the personal risks for company owners when somebody decides to sue the company. In addition, owners can also cut down on the income taxes they pay as the sole owners of their company, and also prevent the possibility of a personal bankruptcy by incorporation.
You can choose to incorporate your company under four types of incorporation,
namely the Limited Liability Company (LLC), the C Corporation, the S Corporation
and the Nonprofit Corporation. It is worth pointing that each type of
incorporation has its own advantages and disadvantages, which means that
you must choose the best for your own business concerns.
If experts are to be believed, for incorporating your Incorporation service company the right way may determine the success or failure of your venture. Blame it to the growing number of small and medium-sized business ventures, a cheap and quick way of incorporating them has become a necessity.
More often than not, Incorporation service are offered to small and medium sized businesses trying to change into corporations. As a matter of fact incorporation service providers help small businesses register and form a corporation, manage administration services of corporate firms and aid in other legal services. It is worth mentioning in this regard that Incorporation services by every provider include preparing and filing the necessary Articles of Incorporation for your company and reserving a company name. In an ideal scenario some incorporation service companies stock ledgers, seals and minutes of the first meeting of the company. On the other hand, there are others who act as registered agents for your corporation, sending and receiving official documents on your corporations behalf.
In case if you are interested in starting an Incorporation service, it is a business that you can float with a capital of $1,000 to $5,000, copies of the Certificate of Incorporation form and a thorough understanding of the incorporation laws in the United States.
In a very few years that internet has been exiting, there is no denying that it has fast become a virtual shopping site where everything from the most common to the hard to find items can be found. In theory Incorporation service are one. It is worth pointing that most businesses choose to incorporate because of the benefits that can be derived from it.
Not so long ago, only big businesses were incorporated.
Fact remained that these businesses can provide the best compensation packages and benefits that are near to impossible in smaller establishments that are not incorporated.
On the other hand during the middle half of the 1900s, other smaller businesses started picking up the idea. According to experts, one of the reasons that incorporated businesses enjoy is tax exemption and tax holidays that translate into big savings that can be used as additional capital.
During the 70s the reason to incorporate even small businesses had been so attractive that small businesses started to incorporate. Later though, congress started curtailing the benefits that the big corporations are enjoying that today, even small organizations can start having additional fringe benefits. In simple terms, this resulted in smaller entities having parity with big corporations in terms of tax-deductible benefits without being incorporated.
While there is no denying that parity has been achieved, there are still many reasons for incorporating.
First and foremost it has to do with image.
Fact remained that a good title like President or the CEO of a corporation can command respect among clients. There is no denying that clients would normally prefer to talk with the top executives of a company than any other person with a non-corporate title to back him up.
Furthermore, another is the protection of a corporation when buying services. It is worth pointing to soften the exposure of the company, many are now requiring independent contractors to incorporate themselves before their services are accepted.
Always remember that an incorporated business has a wide range of powers. In addition it has its own legal personality separate from its stockholders, owners and investors that is mandated and protected by state laws. Moreover it can enter into contracts and buy and sell properties and goods subject to lawful transactions.
In case when legal problems arise, anyone from the company can represent the corporation in behalf of the company.
In theory an incorporated company is liable for its own debts. Moreover the directors, shareholder and owners are shielded from the companys debt and can not be sued in behalf of the company. Fact remained that the company will have to bear the burden of is own debts from its own resources except in cases when an individual guarantees the corporate debt or as mandated by the court.
Always remember that corporations are granted a separate personality that it can go on even after the death of the owner and the shareholders.
In other word, there is money to be saved privileges to be enjoyed when an entity is incorporated.
While there is plenty of books whereby an individual can incorporate himself without a lawyer, the safest and surest way is still to have one. Fact of the matter is the expertise of a lawyer encompasses consideration for commercial law, laws on taxation, securities legislation, limited liability, local and national ordinances and a wealth of knowledge regarding business consideration.