A. We do not provide legal advice, but you may want to ask your attorney about tax benefits you may receive under the new corp filing laws, you will likely receive tax benefits. Generally speaking, corporations garner a higher price on the market than a partnership or sole proprietorship because earnings, investment opportunities and shareholder interest can all be calculated when assessing the value of the business. To raise money, corporations may sell shares on the market -- an option which is unavailable to individual owners.

A. A C-Corporation (a regular corporation) acts as another legal entity that conducts business. C-Corps, S-Corps and LLCs can all be sued, open a bank account, issue stocks and own property. The business owner can retain his own bank account assets, personal property and credit history independent of his business dealings. The difference with a C-Corp is that this entity may be double-taxed on both business and personal forms.

An LLC (Limited Liability Company) aims to protect the assets of the business owner, who is now deemed a "member" of the corporation (rather than a "shareholder" or "partner.") Come tax-time, an LLC is normally taxed as a partnership, so the profits or losses are typically recorded on a member's personal taxes. LLC offers greater flexibility in business dealings because members of an LLC do not need to record the minutes of their meetings to retain their status, as a normal C-Corporation might. However, unlike a C-Corp or an S-Corp, an LLC cannot issue stocks.

Many people like S-Corporations because they are the most inexpensive way to file a corporation. Like a C-Corp and LLC, the owner will just pay individual income taxes based on his salary, dividends and bonuses, rather than pay the business's income taxes. With an S-Corp, profits and losses can be transferred to the shareholders, thus limiting personal liability. Unlike LLCs and C-Corps, though, the number of shareholders is limited with an S-Corp. Ask us how you can maximize your profits through incorporation.

Note: We are not licensed CPA and the information provided is general public information from the IRS. For more specific recommendations, please consult your CPA.

A. The good news is that just about anyone can form a corporation! Often times, wealthy entrepreneurs will go out on a limb with a new corporation, which allows them greater flexibility without having to worry about losing their personal assets should the business go awry. Established businesses looking to attract outside investors and additional corporate capital are best served with a corporation because sole proprietors cannot issue stocks. As long as the corp filing fees are paid, you have a registered agent with an address in your state of operation and the articles of incorporation are formed, anyone can incorporate their business.

A. Usually it's recommended that you form your corporation company in the state where you are located or where you plan to do most of your business. Of course, you may take the route of many Fortune 500 companies and choose to incorporate in Delaware, which is believed to have a more corporate-friendly climate. Some entrepreneurs also like Nevada because there are no state income taxes, no franchise taxes, no corporate income tax, small annual fees, minimal disclosure requirements and no taxation on corporate shares. A "foreign corporation" may pertain to a corporation from another country or simply a corporation from a different state than where it is registered. While there are additional fees, this is yet another option to consider. At Chapter Group, we can help you sort through these files and fees to make the most informed decision for your success.

A. The Chapter Group corporation filing company would be happy to sit down with you, assess your situation and let you know how the corporation forms process works. You do not need an attorney to form a corporation, as long as you follow all the proper legal procedures. As experienced entrepreneurs who've been there, done that, we can guide you for a fraction of the cost of an attorney. Check out our packages today!