Like Fortune 500 companies corporations are not as big as them.
From a small retail store to big real estate industry are turning into corporations every single day.
Research shows that to utilize the benefits of corporations thousands of small business are getting converted into corporations daily.
As a result of this large number of entrepreneurs are getting interested in creating new business.
But with new business in mind you can't put your personal assets in risk.
By forming a corporation you don't have to worry about your personal asset.
In corporation system only your business assets are at risk.
Debt, financial problems or in any legal problems are the corporate liability, not personal liability of the shareholders.
The creditors can't demand personal assets in case of any loss.
These benefits are utilized by the companies and they are registering themselves as corporation.
For example the companies in Florida are forming Register Florida Corporation and thus enjoying tax benefits Minimizing the risk by Forming A Corporation Corporations are always treated as separate legal entities from the board of directors and shareholders.
Thus by having a corporation you can enjoy a limited liability protection and a legal separation between the corporate entity doing business and the share holders Also the corporation enjoys tax benefits in many cases and thus helps in obtaining business credits.
Not only this, business credits are obtained very easily than any other form of business like partnership or sole proprietorship etc.
Also if you have a corporation then you can get venture capital very easily.
Basically the corporations are owned with the help of shares.
So you can sell the share of the corporation in order to generate valuable capital for the new business.
So the size of the corporation doesn't matter.
What matters is the percent of shares you have in the corporation.
One major drawback of the corporation is there are lots more annual filings and paperwork than any other forms of work.
Dos and Don't while forming A Corporation To start the corporation you can file articles for incorporation with the secretary of the state any time of the day.
You can file Florida Corporation online which has eased the task of filing with the secretary of the state.
These articles are known as Certificate of Incorporation and Corporate Charter.
But you should be very sure about the corporation before filing the form.
These articles follow some basic rules and laws of United States.
Some of the documents are as follows 1.
Name of the corporation.
The corporation name should be unique.
2.
Name and all other details of the people forming the corporation i.
e.
the details of the board of directors 3.
Location of the office and the registered agents in some states.
4.
You have to declare at the very first that corporation is a non-stock corporation or a stock corporation.
The Articles of Incorporation may vary from jurisdictions to jurisdictions.
In some business the owner faces double taxation problem but it can be resolved with formation of S Corporation.
The owners of S corporation don't have to give double taxation.
But it is always better if you take advice of any professional tax consultants and lawyers before forming any type of Corporation.