Company Incorporation

Company incorporation gives you limited liability protection. It helps you to protect your assets and profits from the possession of the creditor. At Abid Nizami Law Associates, we can help you with company incorporation. Our corporate services help you to start your new business by providing all the paperwork needed. We assist you at every step so that accurate documentation is submitted for approval. We understand the value of your time and money and try to make the incorporation process easy. We can help you to form your following corporations.

Limited Liability Company

You don’t need a board of directors to manage LLC.
Your assets are safe and you can decide the taxation process.
LLC is not globally recognized.
LLC has flexible ownership choices and no limit for shareholders.

C Corporation

C corporation has no limit to owners and investors give preference to it.
It is recognized globally.
You are safe from company liabilities.
A Board of directors is needed for C Corporation.
Shareholders need to file tax returns and pay taxes on profit separately.

S Corporation

It is a better choice for smaller Businesses.
S corporation has the capacity of 100 shareholders.
You are safe from company liabilities.
You have to pay tax on profits only once.
A Board of directors is needed for S corporation.

Non-Profit Corporation:

It is the best option for the safety of your assets if you are doing any
charitable work.
You can start or manage a non-profit corporation but can’t own it.
It is beneficial to grab donors as it looks official.
Tax relaxation (by having 501(c)(3) status with the IRS).
A Board of directors is needed to manage the corporation.

What is company incorporation? Incorporation refers to forming a corporate legal entity of a business company. A corporation has shareholders and they have ownership according to their stock shares. The Board of directors is hired to manage the corporation by representing shareholders’ best interest. Corporates don’t expire automatically. It has to be dissolved intentionally or face bankruptcy. If the company goes bankrupt, shareholders’ assets stay safe from creditors. This is the biggest advantage of incorporating that it gives shareholders limited liability. It also provides easy access towards a transfer of ownership. But double taxation is a problem in company incorporation. Corporations increase the value of shareholders by maximizing profits.

Benefits of Business Incorporation

Secure Assets from lawsuits

Business incorporation gives you the surety that your assets will be saved from business liabilities.

Secure Assets from Creditors

Creditors cant possess your assets in case of any business liability.

Easy transfer of Funds and Ownership

It gives you easy access to transfer your funds faster.

Grow Corporation

Incorporation can enhance your credibility that can help you to grab new potential customers.

At our firm, we have qualified lawyers to assist you in business incorporating. We understand the law and provide you with the best corporate solution for your business. You can contact us anytime to get a consultation. We are happy to serve you.
Email: info@abidassocites.com

FAQs

What are the benefits of company incorporation?

Following are some benefits of incorporation:

Secure Assets from lawsuits: Business incorporation gives you the surety that your assets will be saved from business liabilities.
Secure Assets from Creditors: Creditors can’t possess your assets in case of any business liability.
Easy Transfer of Funds and Ownership: It gives you easy access to transfer your funds faster.
Grow Corporation: Incorporation can enhance your credibility and can help you to grab new potential customers.

What are the drawbacks of incorporation?

A real “downside” of incorporating your company is that you’ll need to upgrade your administrative level to handle your business because you will not be the sole proprietorship anymore. In addition, if you are going for a C Corporation, it can increase the taxes for some small business circumstances because of the double taxation.

What’s the difference between a C Corp and an S Corp?

Below is the top differences between C Corp vs S Corp:

C Corp
C corporation has no limit to owners and investors give preference to it.
It is recognized globally.
You are safe from company liabilities.
A Board of directors is needed for C corporation.
Shareholders need to file tax returns and pay taxes on profit separately.

S Corp It is a better choice for smaller businesses.
S corporation has the capacity of 100 shareholders.
You are safe from company liabilities.
You have to pay tax on profits only once.
A Board of directors is needed for S corporation.

What’s an LLC?

LLC stands for “Limited Liability Company”. An LLC is a mixture of a sole proprietorship and a corporation. It is beneficial for company owners as it limits personal liability and doesn’t involve heavy paperwork of the corporation.

You don’t need a board of directors to manage LLC.
Your assets are safe and you can decide the taxation process.
LLC is not globally recognized.
LLC has flexible ownership choices and no limit for shareholders.

What’s a non-profit corporation?

You can structure a non-profit corporation for five purposes:

Charitable
Religious
Scientific
Educational
Literary

It is the best option for the safety of your assets if you are doing any charitable work. You can start or manage a non-profit corporation but can’t own it. It is beneficial to grab donors as it looks official. You need a board of directors to manage the corporation. A non-profit corporation gets tax relaxation (by having 501(c)(3) status with the IRS) but you need to get approval from both the State and Federal (IRS).

Where should I incorporate?

Companies often incorporate in Delaware, Wyoming, or Nevada. Because Delaware provides flexible, pro-business acts, whereas Wyoming and Nevada offer low filing fees and no state corporate income, or personal income taxes.

However, if your business has less than five shareholders, you should choose a state where you live or where your business has an office to incorporate. If you choose a state where you don’t have a physical presence then you need to pay extra fees and deal with additional paperwork because you’re operating out of your state. And if you have a small business, the added hassle and cost are not worth it.

When is the best time to incorporate?

You should incorporate or form an LLC ASAP because it can give you liability protection and if you take time to incorporate, you can be exposed to liability. Corporation’s start date is not retroactive. That means you need to file two business income tax returns for the year. For example, if the start date of your corporation is Aug 1, then you will need to file as a sole owner from Jan 1 to July 31 and then again you need to file as a corporation from Aug 1 to Dec 31.

How can I incorporate?

You can choose from the following methods for incorporating or forming an LLC.

Do-it-yourself: It is a good option if you want to save money but you have to do everything by yourself. You need to deal with a lot of details and rules.
Online legal filing service: This method is a little bit more costly than DIY. An online legal filing facility will complete all the paperwork for you. A professional service can ensure that your application is processed without any difficulty.
Lawyer: This is more costly than the other two options, but it may be necessary to hire a lawyer in certain circumstances. For example, if you need expert advice on how to allocate your stocks or when you are working with lots of money.

Which is better: An LLC or S-Corp?

It depends on certain circumstances. An LLC can choose to be taxed based on proprietorship/partnership, so it’s more flexible than S Corp in that way. It also has fewer formalities and paperwork. LLC’s taxation process can be better than an S Corp in some situations because S Corp has limited deductions than LLC like in highly-leveraged real estate. It’s best to consult your lawyer.

What happens if I move to another state?

You can deal with this in the following ways:

You can keep the corporation in your state and qualify it to run your business in another state. This method is easy and cheap but in the long run, it can be costly because you need to pay the taxes according to the rules of those 2 states.
Or you can just set up a new corporation in the state where you are moving and dissolve the current corporation.

Why do I need legal documents if I filed with the state?

Bylaws and Corporate Minutes are necessary for corporations, and operating agreements for LLC. It is important to have these documents because if you don’t have them and get sued, these entities will no longer protect without documentation.

What is a Registered Agent and why do I need one?

A corporation or LLC needs a registered agent to receive all the official notices. He/she needs to be available to accept these official notices. It can be a real person or a trained corporation.

How do you pay yourself in an LLC?

It will depend on how you choose the taxation process for your LLC.

Taxed as a C Corp: You can withhold certain taxes and get a salary.
Taxed as an S Corporation: You can have a salary and other money which is not dependent on the self-employment tax.

You can make your own decision according to your requirements or the best way is to talk to your lawyer or tax preparation professional about your case.

Should I Trademark my business name?

Your business name is the identity of your brand and if anyone else takes it you will not be very happy about that but whether or not you should trademark your business name is your decision to make and it depends on the following factors:

If you are using your business name in the URL of your website or any account then having a trademark can be useful.
If you want to expand your business to another state, a trademark can be beneficial.
Registration generates a legal belief that the trademark is yours and you can use it for the products and services mentioned in your trademark application. This can be useful if you ever need to enforce your trademark by suing someone.