Online Business Incorporation Services
- What are the benefits of incorporating my business?
There can be many benefits to incorporating a business, including insulating your personal assets from creditors of the business, tax savings and advantageous retirement benefits.
- What are the differences between a corporation and an LLC?
Both corporations and LLC’s provide liability protection for their owners, although an LLC does not have to follow the corporate formalities required of corporations. Income of an LLC can be taxed only once at the owner level as opposed to at both the entity level and the owner level. Although the same is true for a corporation if it has made a Subchapter S election, there are limitations on who can own a Subchapter S corporation that do not exist for LLC’s.
- Can 1 person be the sole owner, officer and director of a corporation or an LLC?
Yes, one person can incorporate a business, own all of the shares (if a corporation) or membership interests (if an LLC), be the sole director (if a corporation) or the sole manager (if an LLC) and hold all offices (whether a corporation or an LLC).
- What is a registered agent?
A registered agent is the person or entity to which State agencies send all official correspondence for a company and is the person or entity that is served with any lawsuits that might be filed against the company. All corporations, LLC’s and limited partnerships must have a registered agent in the State in which they incorporate.
- In which State should I incorporate my business?
The State in which you should incorporate will depend on many factors, including where you will be doing business, what type of business you will be conducting, where your customers are located, tax considerations, privacy concerns, etc. Most of our customers elect to incorporate in the State in which they reside and will be doing business. Other customers elect to incorporate in Delaware or Nevada. These States often are viewed as good choices for incorporation due to favorable tax treatment, privacy protection and pro-business laws. If you are uncertain regarding the State in which you should incorporate, you should consult an attorney who can advise you with respect to this decision.
- Should I register my company’s name as a trademark?
Many people believe that if they incorporate a business using a particular name then no one else can use that name for their business. That is not correct. Another business could file a Fictitious Business Name Application and have rights to use the name. Another business could incorporate in another State using that same name. Also, in some States if you incorporated one type of entity using a particular name (for example, a corporation), another business could incorporate even in that same State as a different type of entity (for example, an LLC) using the same name. The best way to protect your rights to a particular business name is to register the name as a trademark.
- Can I form a non-profit corporation?
In general, there are no restrictions on who can incorporate a non-profit corporation. However, you can only incorporate a non-profit corporation for specific, non-profit purposes. The specific non-profit purposes vary from State-to-State. Typical non-profit corporations are charitable corporations, religious corporations, trade associations, social clubs, etc.
- Can I incorporate in Delaware even though I live and work in another State?
Yes, you many incorporate in Delaware, Nevada or any other State even though your business is not located in that State. You must, however, have a registered agent located in that State. A and A Incorporation Services can act as your registered agent in all 50 States. Many of our customers believe that there are benefits to incorporating in Delaware or Nevada even if they do not do business in those States. If you are interested in doing this, you should consult with an attorney. Many of the benefits that people believe they will be getting by incorporating in Delaware or Nevada may not really be available to you. This is particularly true for smaller, closely-held private companies.
- Which States have the best overall business tax climates?
South Dakota, Nevada, Alaska, Florida, Montana, Texas, New Hampshire, Oregon and Delaware (according to “2009 State Business Tax Climate Index”, The Tax Foundation, October 2008, based on corporate tax rates, individual income tax rates, sales tax rates, unemployment insurance tax rates and property tax rates).
- Which States have the worst overall business tax climates?
New Jersey, New York, California, Ohio, Rhode Island, Maryland, Iowa, Vermont, Nebraska, Minnesota (according to “2009 State Business Tax Climate Index”, The Tax Foundation, October 2008, based on corporate tax rates, individual income tax rates, sales tax rates, unemployment insurance tax rates and property tax rates).
- Which States have no personal income tax?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming (according to “Business Tax Index 2008”, Small Business & Entrepreneurship Council, April 2008).
- Which States have the highest personal income tax rates?
California, Vermont, Oregon, New Jersey, Maine, Washington D.C. and Hawaii (according to “Business Tax Index 2008”, Small Business & Entrepreneurship Council, April 2008).
- Which States have no corporate income tax?
Nevada, South Dakota, Washington and Wyoming (according to “Business Tax Index 2008”, Small Business & Entrepreneurship Council, April 2008).
- Which States have the highest corporate income tax rates?
Pennsylvania, Washington D.C., Iowa, Minnesota, Massachusetts, Alaska and New Jersey (according to “Business Tax Index 2008”, Small Business & Entrepreneurship Council, April 2008).