Legal Questions for Startup Small Businesses

Legal Questions for Startup Small Businesses Small businesses need legal services for such instances as the collection of bad debts, customer contracts, trademarks, patents, copyrights, rental lease agreements, product liability concerns and tax problems. Answers to your entrepreneurial questions:

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1. What Structure is Best for My Startup Business?


2. Should I Incorporate My Small Business?


3. What Type of Corporation is Right for My Company?


4. What is the Difference Between Patents, Trademarks, and Copyrights?


5. What is The Best Legal Protection to My Business Ideas and Intellectual Property?


6. How is a Will Different than a Trust? 

 

 

 

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Is Legalzoom Good for Incorporation? Review and Promo Codes Save 10%

Is Legalzoom Good for Incorporation? Review and Promo Codes Save 10% Many of my entrepreneurial readers have asked me, "Is LegalZoom good for incorporation?" They asked me to review Legalzoom.com services for S-Corp (subchapter S corporation) and C-Corporations for their new business formations.

Let"s start with the basics and review what corporation is and what it does for your company.

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S CORPORATION DEFINITION

The Wikipedia defines an S corporation as, "United States federal income tax purposes in Chapter 1 of the Internal Revenue Code".  Most S-corps do not pay taxes; instead, the corporation"s gains or losses are "passed through" to the corporations" shareholders. You as the business owner is the shareholder.

It"s important to realize that legal entities such as a company are formed at the state level. Additionally, the S corporation is the same legal entity as the C company at the state level. Both are the exact legal entity- the company.

The distinguishing feature of S or C is a national income tax idea. Please know that both corporation types begin as a company. A company once formed under state law is taxed as a C corporation by default.

Afterwards, this company can decide to have a C corporation elect to become an S corporation under the Internal Revenue Code.

This election is achieved by first ensuring that the company and its owners, the shareholders,  meet the IRS rules. Then the legal documents are completed and filed along with the S corporation election form.



 

LEGALZOOM S-CORP REVIEW AND SERVICE OPTIONS

LegalZoom provides two levels of S Corp services. It has a prepare only choice where they prepare the legal form to your corporation and then give you instructions on how to document it. Presently, this service is a $45 add-on to the LegalZoom Economy and Standard Packages and is included in the Gold Incorporation Package.

Get Started Year-round attorney help, from contracts and agreements to trademarks and trusts.

The second S corp service which LegalZoom provides is a complete legal service S Corporation election service in which they do it all for you which includes the filing with the Internal Revenue Service. As of the date of the review, this service costs $80 (0r is a $35 add-on to the Gold package).

If you"re wondering about the trustworthiness of the service, there"s no need to worry. Believe it or not, the getting of an S-corp status is very common among small businesses of all sizes.

So, you can be certain that LegalZoom.com has perfected the procedure for efficiently and correctly obtaining an S corp status because of its over one million satisfied small business customers. It"s quite significant that you entrust this requirement to a trustworthy and proven incorporation services supplier. Some crafty entrepreneurs try to save money and do it themselves. This is a foolish idea that will not save much money and waste a lot of time. Furthermore, you probably will make mistakes that could cost you thousands in the future.

After all, the failure to timely or properly obtain the S-corp standing according to IRS rules can later lead to significant penalties and taxes.

Bear in mind; the S-corp once correctly obtained permits a company and its shareholders to prevent the double taxation of C corporations. These significant savings goes into your pocket, and overtime will be substantial- don"t risk losing this correct or later finding out that the tax advantage wasn"t able because of an improper S corp election.

Let LegalZoom S Corp election service offer you peace of mind and protection from excessive taxation.

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Legalzoom Nonprofit Review: Pros & Cons and Promo Codes

Legalzoom Nonprofit Review: Pros & Cons and Promo Codes This Legalzoom Nonprofit Review will answer your questions about forming a nonprofit online at Legalzoom.com

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Advantages of Forming a Nonprofit

1.  Get Tax Relief - As a nonprofit, you are eligible for federal, state and even some income tax exemptions


2. Accept Donations Legally - Once you form your nonprofit you can then apply for 501c3 status which constitutes a legal charity


3. Asset Protection - The nonprofit directors and members are protected personally from any legal action or debt occurred by the nonprofit

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Pros of Legalzoom

• Satisfaction Guarantee makes certain that you are pleased with the service or you will get your money back. I like doing business with companies that stand behind their services with such a strong policy. You must make your refund request within 60 days of purchase.


• Multiple Package prices are great because each person can opt for the one that fits their needs and budget. Starting at $99 covers all the basics for most charitable organizations.


• Experience of Millions of legal formations of LLC, INC corporations and Nonprofits assures that they have the professional staff and systems in place to make your nonprofit dream a reality.

Cons of Legalzoom

• Fees incurred by hiring Legalzoom to set up your nonprofit instead of doing it yourself. Which is possible, yet time-consuming and a bit complex. Here is a step by step tutorial if you have the time and organization skills to set up your own nonprofit. 


• Dissatisfied customers are few but mistakes do happen in all businesses, especially large ones like Legalzoom. If you do have issues you can make a refund request and get your money back.

Definition of 501c3 Organization

This designation - 501c3 - is an IRS tax code which marks your group for special taxation rules which exempt you from paying federal, state and income taxes.  Once you form your nonprofit corporation you can apply for this advantageous application with the help of Legalzoom experts.

To be qualified for Nonprofit status your corporation needs to be created to help the public, or a specific group of people or the members of the Nonprofit.  Organizations such as religious, charitable and political are usually set up as nonprofit corporations. Examples of member-based nonprofits are associations such as The Elks or a golf club.

 





 

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Legalzoom Living Trusts Review with Promo Code Savings

Legalzoom Living Trusts Review with Promo Code Savings When you have Living Trust in place your family will inherit your assets instead of them being spent on legal court fees. Also, your beneficiaries are able to have access to their inheritance faster without going court battles.


Give your family clarity and peace of mind, start your Living Trust at LegalZoom.

A Living Trust is a legal document that details whom you want to manage your property and ultimately distribute your assets to your loved one, charities or employees.

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Save Thousands of Dollars

You will save over 80% of the cost of a private attorney (some charge over $3000) to set up a Living Trust, as compared to plans starting at $249. Then use our exclusive promo code BEST4B and save another 10%

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Avoid Probate Court

Your estate stays intact and is inherited by your family and not diluted by expensive and lengthy probate court proceedings.

 

Keep Your Business Private

Since your estate will not go through Probate Court the public and your prying neighbors will not be able to know your assets, debt nor who will inherit your estate.

 

 

Living Trust Packages by Legalzoom

Three packages are offered from the Basic at $249 to the best value, Comprehensive at $269 and my recommendation, The Estate Plan Bundle at $299.

I recommend the Estate Plan Bundle because of the low price of an additional $50 you get Estate Planning Attorney Advice for 1 Year.

Plus the bundle includes these important legal document preparation and filing:

1. Financial Power of Attorney - Assign decision makers for your legal and financial affairs if you become incapacitated


2. Living Will - Tell your loved ones what you want at the end of your life


3. Healthcare Power of Attorney - Decide who can make important medical treatment decisions for you

 

Free Revisions

All the plans include Free Revisions for up to 30 days if you want to amend our Living Trust.

 

 





Frequently Asked Questions about Living Trusts

 

1. If I have a Living Trust do I also need a Will? Yes, because all of your assets must have been transferred into the Living Trust in order to be passed on to your heirs. Attorneys recommend that you have a Will in place to be sure that any assets not yet put into the Living Trust at the time of our death are distributed according to your wishes.


2. Is my Living Trust legal if I move to a different state? Yes, Living Trusts are valid and legal in all 50 states in America. The state where it was created and you signed is not relevant to its legality. However, if you buy property and acquire assets in your new state of residence it must be transferred into your Living Trust.


3. Can I add or remove property from the Living Trust? Yes, If your Living Trust is an individual trust you can add or remove property at any time. But if you have a shared trust, you will need to get your co-trustee agreement if you are co-owners of the property.

A Living Trust is a legal document that details whom you want to manage your property and ultimately distribute your assets to your loved one, charities or employees.

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Legalzoom Registered Agent Review: Right for Your Business? Worth It?

Legalzoom Registered Agent Review: Right for Your Business? Worth It? Wondering exactly what the Legalzoom Registered Agent service is, is it right for your business and worth it?  Legalzoom"s registered agent service is reviewed including an overview of the role, the need for a registered agent, plus my recommendations on which companies need an agent and which do not need a registered agent.

Registered Agent Services at LegalZoom

A registered agent is a company that you assign to receive your important legal documents in the regular mail on your behalf.

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Advantages of Having a Registered Agent (RA)

• Avoid Fines - Many states require businesses to have a registered agent to receive court documents and other important notifications


• Prevents Oversights - The registered agent will be sure to receive the filings and both notify and advise you of the next legal actions you need to take to stay safe in within the law


• Privacy and Freedom - By hiring the services of a Registered Agent at a professional firm such as Legalzoom, you keep your business matters private from your nosy neighbors and will not be disturbed at home by being served court documents.

 

 

Legalzoom Registered Agent Services Includes:

1. Notification and emailed copies of any court documents sent to your business


2. Archive, scans, and ID of documents for safe recordkeeping


3. Maintain Calendar of Compliance dates that important paperwork must be filed


4. Email notification reminders of upcoming filing deadlines for state income tax and annual reports


5. Attorney advice about legal matters from the Legalzoom network is available as an optional service

 

Who can be a Registered Agent?

The RA must be an adult or business authorized by you, the business owner, that is available during standard business hours at a street address in the state which your company was formed as a DBA, LLC or INC.

Some states use different terms for the same person and service. The names term resident agent, statutory agent, agent for service of process all function the same as the Registered Agent.

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Can I be my Own Business Registered Agent?

Yes, you can be legally, but most business experts advise against it because this is such an important role. When you hire someone else to be responsible for receiving your legal and tax documents you will rest easy knowing that they will always be there to accept such important paperwork. No longer will you worry about missing a tax notice or being on vacation when the court served you papers.

 

Things Your Registered Agent can Receive for Your Business

1. Court documents if you are served


2. State tax notifications


3. Secretary of State notices


4. Annual Report notices


5. Junk Mail - they will dispose of


6. Office state correspondence

 

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Is Legalzoom Worth it for LLC? Review with Referral Code Coupon

Is Legalzoom Worth it for LLC? Review with Referral Code Coupon Recently my reader Shelly Williams, from Denton, Texas asked me the question, "Is LegalZoom Worth it for LLC?" Perhaps you too are wondering, Should I use LegalZoom for LLC formation? or DBA, EIN number or incorporation. Is it good for starting a business?

 

Here is my professional answer:

After much research, user interviews and my own personal buying experience, Yes I highly recommend LegalZoom to start your business and form your LLC.

It is definitely worth it as compared to DIY, setting up your own LLC, which is complicated and time-consuming. Plus you could make a costly mistake that you won"t find out about until it is too late - when you are being sued and have no protection for your personal assets because you filled out the form incorrectly.  As a busy professional your time is worth more building your brand and contacting customers than trying to figure out how to be your own attorney.

New business owners will save both time and money using LegalZoom to legally start their business.

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Here"s why LegalZoom is worth it:

1. Affordable Legal Services - For straightforward legal services such as forming an LLC you save 400% vs a local law firm in your area. For business startups when cash is tight this is an excellent way to reduce expenses while maintaining quality.


2. Proven Expertise - They have set up over a million businesses so they have the experience to help you start your business legally.


3. Fast Delivery Service - You can get your LLC formed within 7-10 business days.


4. Convenient - Using their user-friendly website you can have your LLC set up in under one hour.


5. Attorney Advice - Consultation with an attorney is included for an unlimited number of calls about legal matters.


6. Great Customer Service - US-based customer service agents are ready to take your telephone call from 5 am to 7 pm, Mon - Friday and Weekends from 7:00 am to 4 pm.


7. Satisfaction Guaranteed - They offer a Satisfaction Guarantee within 60 days of purchase for a refund or credit.

 

Positive Customer Reviews and Ratings

All across the internet, LegalZoom users have posted high ratings and positive reviews. Small business pros such as Joshua Dorkin, of top site Bigger Pockets, says, "I"ve used them in the past and had no problems. They were very helpful in helping me accomplish my needs."

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Which is Better Legalzoom or Nolo? Online Legal Services Review

Which is Better Legalzoom or Nolo? Online Legal Services Review My reader Steve Silton asked me the question, Which is Better LegalZoom or Nolo?


Here is my answer:

To begin, comparing a full-service legal services company such as LegalZoom with a primarily legal forms printer is not comparable. That being said, if you are not an attorney licensed in your state do not use Nolo legal forms for the important work of forming your LLC, getting your DBA or incorporation. While you may save a little bit of money, it is penny wise and pounds foolish (to use one of my mother"s favorite sayings!) This means that there is too much importance to protect your business and your personal assets, such as your families home to cut corners here.

LegalZoom has been in the business of the formation of LLC, DBA Doing Business As, and Incorporations for 12 years setting up over one million businesses. They are highly rated by millions of users across the internet.

Additionally, LegalZoom gives you lifetime customer support for any questions or issues that come up later about your LLC formation. Oh and my favorite part, they are available by phone and are in the USA, so they are native English speakers and are easy to speak with.

LegalZoom - Over 1 million businesses have trusted us to help them get started.

Plus LegalZoom also has their team of top legal attorneys continue to review and maintain the documents and processes to be the most up to date to comply with the latest legal regulations for all US states.

Nolo has expanded their offerings to offer a FORM YOUR LLC ONLINE service (pictured below). Essentially this is a questionnaire form titled, Start Your Company Today. To form your LLC you will be answering questions such as;

I want to form my LLC in (US State)

Select Your LLC Package; Express Premiere Service $299 plus state fees and $99, plus state fees Basic Service.

Then as you proceed through the ordering process you will be listing members, writing your operating agreement, getting an EIN Employer Identification Number, assigning a registered agent and finalizing your order.

 

 



 

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Primer on Intellectual Property - Patents, Trademarks and Copyrights

Primer on Intellectual Property - Patents, Trademarks and Copyrights Did you know that your most valuable business assets are not physical? They are intangible, your company name, brand, manufacturing innovations and inventions and are referred to as your Intellectual Property. As such they should be protected from theft or infringement.

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But what is the difference between patents, trademarks, and copyrights? Which one do I use for different things - logos or products?

Read this article to get all the information you need to safeguard your IP

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Why You Should Not Be Your Registered Agent

Why You Should Not Be Your Registered Agent You may be thinking about acting as your registered agent for LLC or business problems, but it is not wise to do so. The answer to "Could you be your registered agent?" Is yes, but you probably should not.



You might be thinking, "What is a registered agent?" A registered agent is a person or service your company appoints to receive official notices on your LLC"s or company"s behalf. Including service of process, correspondence with the country, and notifications about federal and state taxation.

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The agent for service of process could be anybody--the company owner, an employee, or an external individual or service hired to fulfill the function.

Registered agents are especially crucial for businesses that aren"t established in a state in which they"re doing business (as an instance, you"re situated in New York, but also sell items or provide services in New Jersey). There must a way to get the company for legal purposes, and a designated registered agent is the means to do so.

Most small businesses hire a registered agent service, such as my recommendation Legalzoom, a business that"s set up to accept notices and service of process for many different businesses. These companies have comprehensive procedures in place so that they can monitor anything they receive for your benefit and make sure it comes to your attention immediately.

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It may seem as though it would be less expensive and easier to only be your registered agent, but there are numerous reasons why this isn"t good business practice.

1. The agent should must a physical street address.
Corporations, whether c-corp or s-corps and LLC registered agents must have a physical address within the country where the business is doing business, and a post office box doesn"t suffice. A private email service or mailbox also doesn"t fulfill the requirement.
There needs to be a physical place where somebody can go to provide service of process or send mail. If you are conducting business transactions out of your headquarter state, you may not have a physical location in that state.

2. You may not wish to use your house address.
If you plan on being your registered agent, you might wind up needing to use your house address (particularly in the event you"ve got a home-based or web-based business), which will make the speech public. This raises privacy issues, and also means the speech will be available to entrepreneurs and could increase the amount of junk mail you get at your dwelling.
It also might indicate a process server or angry litigant could come to your house to serve you with lawsuits notices and summons, something that you might not need to deal with at home.

3. Address change notices must be made promptly.
One thing to think about as you wonder "Can I be my registered agent?" Is that if you are thinking about moving or relocating your business location, you would have to inform the state of every address change, which is time-consuming. You will probably also have to pay a commission for every notification of a change in speech.

When you add those up fees and think about the time involved in managing changes of address with the state, it"s simpler and possibly less expensive to employ a registered agent service.

4. Agents are expected to maintain regular business hours.
Registered agents will need to have regular business hours to be able to accept service of process. This can be problematic for small business owners who frequently aren"t able to keep in an office all day, and that can"t afford to employ full-time employees to work from a particular location.

5. You should have an agent in each state.
You want to designate a registered agent in each state that the company does business in. It would be quite expensive to maintain a physical location for your organization in each state.

If you seek the services of a registered agent service, you can easily keep an agent in each state without needing to hire workers or maintain a physical location in each state where you"re conducting business.

6. You never need to miss an important note.
Paying a small fee annually for registered agent services so that you have an agent for service of process and other notices may be well worth the time you"ll save in attempting to keep organize and track all of the government officials notices by yourself and making sure you"re reading and sorting your email.

This sort of service ensures that you won"t miss or forget about an important note, which may be hugely costly for your organization if you don"t respond to pending litigation or if you don"t pay taxes by their obligations.

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Legalzoom Business Legal Plans Review & Promo Code

Legalzoom Business Legal Plans Review & Promo Code If you are starting a business, or are a small business owner you need legal help every day. Every business needs legal services, from office leases to employment laws and sales contracts good legal advice is priceless and an important component of our success.


I recommend having a low-cost, but high-value business legal plan in place so you have an instant resource to ask an attorney a question and get good legal advice. When I did not have a legal plan, I often hesitated and neglected the vital step of getting good legal counsel and made mistakes in signing leases that were not reviewed by my lawyer and drafting employment contracts that were illegal.

What I should have done was to have spent about $30 and been protected and advised by professional attornies instead of risking my business and personal assets. I have lived and learned. Today I have subscribed to the Legalzoom legal plan.

Legalzoom Business Legal Plans - Get Started  Year-round attorney help, from contracts and agreements to trademarks and trusts.

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Business Legal Plan: How it Works

• Legalzoom has a national network of selected attorneys covering over 30 different law practices such as Estate Planning, Family and Personal, Business and Intellectual Property.


• Business matters covered include business formation, litigation, management, collection and debt issues, corporate ownership, employment and termination, franchise disclosure, landlord-tenant, real estate and website terms and conditions.


• Attorneys are specific to your particular state and know your state"s laws


• Lawyers are available at the ready for you to make an appointment at your convenience


• Your attorney will call you at the appointed time to answer your calls and discuss your legal situation

 

Legalzoom Legal Plans Monthly Packages Include:

• Attorney consultations and help on new legal matters


• Contract and legal document review - up to 10 pages


• Small business evaluation


• Access to tax professionals


• Legal form library unlimited downloads


• Discounts on other Legalzoom legal services

 

Prices of Business Plans for Legal Services

Costs vary depending upon your state. The average price for the Business Advantage Pro Legal Plan, also called the Business Advisory Plan, starts at $32.15 per month (12 months best value) up to $36 for a 6-month plan.

 

Customer Reviews and Ratings

Verified users Legalzoom customers of the Business Legal Plan rated the service 4.5 stars, out of 457 reviews.

Excerpts from customer reviews that were voted most helpful:

Yes, I would recommend to my family and friends. Yes I enjoy the product

Very easy and quick to use. Also, very cost effective

The service has been terrific since 2002, I wouldn"t be without it!

 

Legalzoom Business Legal Plans - Get Started  Year-round attorney help, from contracts and agreements to trademarks and trusts.

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Legalzoom Review: Provisional Patent Application Patent Pending

Legalzoom Review: Provisional Patent Application Patent Pending Protect your business inventions and get the right to add Patent Pending to your products by filing an application for a Provisional Patent at Legalzoom. Starting at $199 it is one of the cheapest and best ways to protect your business inventions.

Provisional Application for Patent

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What is a Provisional Patent?

The US Trademark and Patent law allow inventors to claim Patent Pending rights after they have made a provisional patent application. This legal document is filed in the United States Patent and Trademark Office (USPTO) to establish you as the rightful owner of the invention commercial rights. A patent is not issued until you proceed with a regular patent application within one year of your provisional patent application.

Benefits of Provisional Patents

Many entrepreneurs misunderstand the advantages of provisional patent applications. They think that it is a patent, with all its associated protection rights. That is not true. The purpose of an application for a provisional patent is to legally establish the date of your priority filing. This date is a marker of your invention date, which prevents another person filing for a patent based on your creation.

A well prepared provisional patent application is a great first step to protect your intellectual property and inventions.

Many IP - Intellectual Property lawyers recommend them for firms with limited budgets who want some protection for their products while they go into the marketplace and test the commerciality of their ideas.

The greatest advantage to businesses is the ability to add the words - Patent Pending - to your products. These two little words will deter dishonest competitors from stealing your business ideas. Also, those words, Patent Pending, can be used to both impress your prospective customers and to include in your marketing message.

 

Provisional Application For Patent

This application is to establish a date of your invention to prevent latecomers copying your ideas. Once you make this claim, you can label your designs - Patent Pending. These small two words are a form of initial protection and warning to would be intellectual property thefts to beware that you are serious about protecting our ideas.

Provisional Application for Patent

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Legalzoom C Corp Review with Coupon Code

Legalzoom C Corp Review with Coupon Code Legalzoom can form your C-corp affordably and quickly. While many new startup businesses choose to form an LLC instead of a Corporation, there are situations in which a Corporation is the best business structure entity choice.  If you plan to get venture capital or take our company public incorporate your business.

If you are unsure, read LLC vs. Corporations - Which are Best?


Setting up a C-corp can be complex because each state has its particular steps for forming a new corporation. There are plenty of laws, paperwork, and fees to pay - plus records and reports to submit annually. Legalzoom takes this overwhelming process and automates it so you can run your own corporation.

Complete review of online legal services at Legalzoom.com plus referral code and get discounts

Form a corporation with speed, value, and ease

 

 

Incorporation Packages at Legalzoom

The prices to register your corporation will vary depending upon your state.  Each state determines their filing fee which starts as low as $25 and can increase to several hundred dollars, as it is in my state of New York at $200.

There are three packages - for Legalzoom services:

1. Economy - $149 - Solid basics to get your corporation formed and your business launched.


2. Standard - $239 - Adds an Incorporation Kit to keep all your important incorporation documents organized.


3. Express Gold - $369 - Best Value because of the added services of rush processing, 2-day delivery, 30 days free Attorney Advice and a $30 discount on your EIN - Employers Identification Number obtainment.

 

 

C Corp Definition

A C-corp, the abbreviation of C Corporation, is a legal form of business entity structure or formation.  If your company chooses to incorporate it becomes an independent legal entity that is separate from you, the business owner.  Since the c-corp is a legal type of person it is taxed and can be sued separately from the owners of the business. In the eyes of the law, your corporation is a type of living being, so it does not cease to exist when shareholders die.

C corporations are owned by shareholders and are required to have a board of directions that make company decisions and oversee operations. Requirements for reporting of financials are required and sent to your state attorney general.

Advantages of C Corp

Limitations of owner liability if a significant benefit of a C corporation. The shareholders are not personally liable for business debts, and court judgments against the company. Owners are protected from being sued individually for corporate misdoings.

1. Corporations have a lower risk of tax audits by the IRS as opposed to LLC


2. Owners and shareholders are protected against liability for business debts


3. C corporations can write off the cost of health plans as a business expense.


4. Profit splits for shareholders and owners can save taxes for the first $50,000 in income that is taxable.


5. Unlimited number of shareholders which allows for stock shares to be used for raising business capital


6. Foreign nationals can own and invest in C corporations, which is not permitted with S Corporations.

 

 

 

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