Online Incorporation MaxBlog

MaxFilings is pleased to announce online ordering of Kit, Seal & Sample Forms for Limited Liability Companies (LLCs), non-profit, and profit corporations as well as professional LLCs and professional corporations.

In addition to convenient online business incorporation, with no obligation and at your leisure, you now have the same convenience when ordering Kit, Seal & Sample forms for your company.

MaxFilings Corporate and LLC Kit, Seal & Sample forms contain sample documents that assist business owners in complying with state rules. These include annual meeting minutes, corporate by-laws, customized agreements for shareholders, and plans for election of officers and directors, to name a few.

And while rules for LLCs are not as strict as they are for corporations, they are advised to maintain accurate records and hold periodic meetings. Certificates must be issued to LLC members and a record of the owners must be maintained.

Kit, Seal & Sample form kits available online at MaxFilings are very affordable, with pricing starting at $80. To view more information and pricing options, select a specific product and click “order/view pricing”:

Kit, Seal & Sample Forms - Corporation
Kit, Seal & Sample Forms - LLC
Kit, Seal & Sample Forms - Nonprofit Corporation
Kit, Seal & Sample Forms - Professional LLC
Kit, Seal & Sample Forms - Professional Corporations

Every corporation, whether a C Corporation, Limited Liability Company, and even non-profit corporations are required to have a Registered Agent in the state of incorporation. A Registered Agent is someone designated by the company to receive and forward any legal and tax documents from the state.

It is not a good idea for businesses to serve as their own Registered Agent. Hiring a third party to serve as a Registered Agent has many benefits for the business owner, which include:

• Allows flexibility with hours and logistics since the Registered Agent must available during normal business hours at a physical location.
• Protects your privacy from customers, vendors, clients, and neighbors since legal documents will not be served at your place of business.

Aside from easy online business formation and filing services, MaxFilings offers full Registered Agent services with long-standing relationships with the Secretaries of State across the nation, guaranteeing timeliness in processing your legal documents.

Determining the best corporate status for your business has many considerations. When thinking about self-employment taxes however, forming an S corporation offers a clear-cut benefit over forming an LLC. This tax applies for such things as Social Security and Medicare, much like the payroll tax deducted from ones paycheck.

In an S Corporation, an individual shareholder only pays tax on salaries and bonuses they receive from the company. On the other hand, a shareholder in an LLC pays on both salaries/bonuses and their share of profit in the company, which can amount to more than 15% of taxable income.

“Can S Corporation Status Reduce Self-Employment Taxes?” in MaxFilings’ Knowledge Center addresses this issue and raises other important considerations you must be aware of.

Incorporating your business may offer benefits over a sole proprietorship or partnership structure, especially since establishing a corporation or limited liability company provides protection of the personal assets of officers, directors, and shareholders.

However, its important to understand that there are limitations to this protection. A few actions that are not subject to the limited liability of corporate or LLC status include but are not limited to:

• Personal guarantee of loans
• Tax evasion
• Criminal activity

To find out more, check out Exceptions to the Limited Liability Protection of a Corporation, which discusses several situations when your status as a corporation may not give you limited liability. And while youre there, take a look at the MaxFilings Knowledge Center to get more important questions answered.

Section 1244 stock in a corporation provides qualified shareholders with an important tax advantage in the event the company suffers a loss or goes out of business.

For ordinary stock, capital losses from the sale of those assets must be offset with other capital gains or with ordinary income, to a limited extent. However, losses from the sale of a section 1244 stock can be used to offset ordinary income up to $50,000 for individuals or $100,000 for joint filers.

In order to qualify for Section 1244 stock, a corporation and its shareholders must meet five important criteria, detailed on “What is Section 1244 Stock?” found at the Knowledge Center at MaxFilings.

Section 1244 stock can help ease the burden for you and your shareholders in the event the company goes defunct. This is an important issue to consider when incorporating your business.

A C Corporation is recognized by the law as an individual entity, separate from its shareholders (owners), many times treated as a human being.

Shareholders enjoy limited liability for the debts, obligations and liabilities incurred by the business as well as liability stemming from possible legal action.

Protection of shareholders personal assets is one of the major reasons business owners choose to incorporate. Normally, shareholders cannot lose more than the amount they invested in the corporation. If the corporation goes bankrupt, the shareholders will not be liable for its debts. Should someone sue the corporation and the corporation is found liable, they can take the corporation’s property to satisfy the judgment but if that property does not satisfy the judgment, they will not be able to take a shareholder’s personal assets, i.e. home, car, bank account. An exception to a shareholder’s limited liability happens when the corporation has recklessly harmed people or has been used to perpetuate a fraud.

C Corporation Taxation

C Corporation shareholders do not report any of the business income and expense on their individual tax return. The corporation files tax returns and pays its income taxes (at generally lower tax rates than would individuals) while the individual shareholders report and pay personal income taxes only on monies paid them by the corporation.

It should be noted that shareholders are required to pay income taxes on income from dividends paid by a C Corporation even though income taxes have previously been paid by the corporation.

Why Form a C Corporation?

C Corporations best serve owners who want the limited liability, a more formal business structure, the ability to reduce overall income taxes and accumulate assets in the business, and ways to more easily raise capital.

Official documents, typically called a Certificate of Incorporation or Articles of Incorporation, must be filed with the appropriate state in order to form a C Corporation.

http://www.maxfilings.com/incorporation-knowledge-center/

Own Your Own Corporation - Why the Rich Own Their Own Companies and Everyone Else Works for Them

by Robert T. Kiyosaki (Foreword), Garrett Sutton

Summary from

Creating the right type of corporate entity for a business can create enormous advantages for the savvy business-person. In this comprehensive guide, a corporate attorney explains the history and rationale of corporations and all the considerations and decisions that go into starting one. Forming a corporation, selecting board members, administering it within the law, creating tax advantages, hiring, protecting ownership of names and corporate assets, insurance, record-keeping–every part of the process is covered. The program is a listening pleasure in spite of all the technical material and, except for not having a written guide on the package, is a perfect reference audio for the kind of audience targeted by the Rich Dad’s Advisors series. T.W