Frequently Asked Questions
01
What is a corporation?
A corporation is a legal entity separate from its owners, and may have an unlimited number of shareholders. A major advantage of any corporate form is that it limits the personal liability of the owners for claims against the corporation. Additionally, as a separate entity, a corporation has unlimited life, extending it beyond the life of its owners. Creation of a corporation occurs when properly completed articles of incorporation are filed with the appropriate state authority, and all fees are paid.
02
What is an S corporation?
An S corporation is a corporation that has elected a special tax status with the IRS. This tax treatment allows the income of the corporation to be treated like the income of a partnership or sole proprietorship; the income is "passed-through" to the shareholders. Thus, shareholder's individual tax returns report the income or loss generated by an S corporation.
Note: In order to qualify for S corporation status, the corporation must be a U.S. corporation with only one class of stock and the shareholders must number fewer than 75. These shareholders must be individuals, estates or certain qualified trusts, who consent in writing to the S corporation election. The shareholders can not be non-resident aliens.
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What are the requirements for the director of the corporation?
Most states only require a corporation to have one director. Each director must be an adult. Furthermore a director is not required to
reside within the state of incorporation. In addition one person may be director and hold all offices.
Note: It is important to note that a shareholder may serve on the board of directors and as an officer. In fact, in most states one shareholder is sufficient to form a corporation.
04
Do I need an attorney to incorporate?
No, an attorney is not a legal requirement to incorporate. DP Business can prepare and file the articles of incorporation, simply fill out our online order form and we will do all the work necessary to form your new corporation.
05
What is a registered agent?
A registered agent provides a registered address for the receipt of service of legal papers A registered agent also serves as a local contact for the Secretary of State and other government agencies. The registered agent receives notice of any suits, tax notices, etc. and then forwards them to the corporation.
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Is it possible for you to act as your own registered agent as long as your registered address is within the state that you are incorporating in??
It is possible for you to act as your own registered agent as long as your address is within the state that you are forming the entity in.
07
What is the corporate kit?
After your Articles are filed, your corporation must hold an organizational meeting where bylaws are adopted. Share certificates can be distributed to shareholders and these transactions should be recorded on the corporation's stock ledger. All of this information can be maintained in a corporate record book, which is included in the corporate kit. Our corporate kit includes all of the information and paperwork needed to make this process easier.
08
What is a Limited Liability Company?
The LLC is a distinct business entity. An LLC offers an alternative to partnerships and corporations by combining the corporate advantages of limited liability with the partnership advantage of pass-through taxation.
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Do I need an attorney to form an LLC?
No, an attorney is not a legal requirement to incorporate. DP Business can prepare and file the articles of incorporation, simply fill out our online order form and we will do all the work necessary to form your new corporation.
What are the advantages of an LLC?
1. Limited Liability: For the members of an LLC, liability is limited to the amount of capital which the member has invested in the LLC. Therefore, members of an LLC are offered the same liability protection as a corporation's shareholders.
2. Pass-Through Taxation: LLC's allow for pass-through taxation. That is, the earnings of an LLC are only taxed once.
3. Flexible Management Structure and Flexible Ownership: LLC's are generally free to establish any organizational structure agreed on by its members.
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How is the ownership of an LLC evidenced?
An LLC issues certificates indicating the particular holder’s percentage of ownership in the business. These membership certificates are included in our LLC kit.
What is the organizational structure of an LLC?
An LLC is owned by its members. An LLC may be managed by its members (owners) or by selecting a manager.
If an LLC is managed by its members, it operates similar to a partnership. Each member has an equal say in the management of the LLC. If the members choose, they may elect a manager to oversee the affairs of the LLC.
Member management, however, is the normal default rule of state law.
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What is the LLC kit?
After your Articles are filed, your LLC should have an organizational meeting where an operating agreement is adopted. Member certificates can be distributed to members and these transactions should be recorded in the LLC ledger. All of this information can be maintained in a limited liability company record book, which is included in the LLC kit. Our LLC kit includes all of the information and paperwork needed to make this process easier.
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How do I get started?
Upon receiving your completed order, DP Business will immediately file and execute all the necessary documentation to file your corporation. To place an order, simply utilize our online order form.
Price Match Guarantee
We do everything in our power to make sure you do not pay a penny more than you should for any services you order from DP BUSINESS. If you have seen a lower price from another service provider for the same service, we will match the price. Even after your order, if you see a lower price within 30 days, we will refund 100% of the difference.
Of course, our Price Match Guarantee only applies to reasonable proposals from competitors. We added this disclaimer on July 11, 2014 because a vendor submitted a crazy proposal to one of our Fortune 500 clients offering to charge a 90% discount from fair market pricing to serve as registered agent and handle unlimited service of process at no additional charge. To paraphrase Forrest Gump, "crazy is as crazy does."
Specializing in Incorporating Start-Ups & Existing Businesses