In all states, if you wish to file for Corporation or Limited Liability Company as a new business entity, the name of the entity sought to be formed must be distinguishable from any entity already of record. [ Read More… → ]
In a large number of states, an individual who is an initial Director of the Corporation also can serve as the Statutory Agent for the corporation. [ Read More… → ]
Tags: Incorporation Questions · May 8th, 2013
A corporation is formed by filing the Articles of Incorporation (or the Certification of Incorporation) with the appropriate state agency.
Only after that filing is completed does attention turn toward the type of corporate treatment, as it is not done with the Secretary of State or with the incorporation filing. [ Read More… → ]
Tags: Incorporation Questions · March 25th, 2013
IRS Form 2553 allows you to elect S status for your corporation, which provides for pass-through tax treatment as compared to being taxed at both the corporate and shareholder level. [ Read More… → ]
Tags: Incorporation Questions · March 5th, 2013
A company name can be any set of words — including a person’s name — so long as that identity is not already registered by another in a particular state.
Minor children can take title to real estate via Quitclaim and can be named as shareholders in a corporation.
But there are issues and limitations surrounding the future capabilities of each of these actions. [ Read More… → ]
Corporations and LLCs do not necessarily have to disclose the names of people holding ownership interests in those entities within any public records. [ Read More… → ]
Whether or not foreigners or non-US citizen living in the USA and holding work-visas can create a Limited Liability Company or file for Corporation status depends upon the state involved. [ Read More… → ]
For the purposes for forming a general business Corporation or filing for Limited Liability Company (LLC) status, there are no requirements that a person be a resident of the state in which the company is to be formed.
But there is one requirement for most states that must be managed. [ Read More… → ]
If I File for LLC or Incorporation This Year, May I Delay the Operation of the Business Until Next Year?
The filing of the paperwork to form an LLC or to incorporate does not obligate the entity to immediately begin conducting business.
But as is typical, that doesn’t mean that there won’t be some government requirements for the formed business. [ Read More… → ]
A person starting a new corporation does NOT file for S-corporation status as the first order of business. [ Read More… → ]
Tags: Incorporation Questions · March 31st, 2011
Can I Create an LLC or Incorporate and Put Cash into the Business to Protect My Money from Creditors?
If a Limited Liability Company (LLC) or Corporation is set up only to ‘hide assets’, a debtor could pursue legal action to pierce the corporate veil and seize the assets of the fraudulent LLC or Incorporation. [ Read More… → ]
Typically, an executive director or CEO can represent a corporation in day-to-day business functions. But the chief executive of a corporation or LLC cannot represent the corporation in a court of law, as legal counsel, or as part of a litigation. [ Read More… → ]
In just about every state, only one person needs to take the actions necessary to incorporate a business or to file for LLC status. But the requirements do differ by state. [ Read More… → ]
Nearly all states have laws permitting owners of an LLC or a Corporation to review the books and records of the company upon written demand to the other owners. [ Read More… → ]
Assets are transferred from one person or entity to another in different ways, depending upon the nature of the property. This distinction holds true when those assets are transferred between an individual and a newly formed Limited Liability Company or Corporation as well. [ Read More… → ]
If I Start an LLC with a Partner Who Owes Child Support or Back Taxes, Can the Government Take Money from the Business?
Much of the ability of a government agency to easily seize or attach assets for issues like unpaid child support or unpaid taxes rests with the type of business structure created. [ Read More… → ]
No. Certainly two corporations can jointly own a piece of real estate, and a Quitclaim Deed can be created to reflect joint tenancy once a real estate purchase agreement is formalized.
But most states reserve ’survivorship rights’ for individuals, especially since corporate entities cannot die.
Trusts are structured with liability in mind, to keep the beneficiaries removed from the assets involved. Most Trusts are set up with personal property assets like land, or homes or vehicles, and their liabilities are somewhat limited. But some trusts hold assets like fully operating businesses, LLCs and corporations. So if a business held by a Trust ‘goes bad’, can the beneficiaries of that Trust become personally liable for any portion of the debt generated by any operational business assets within a Trust — especially if that debt exceeds the value of the assets in the trust? [ Read More… → ]
The use of ‘Inc.’ or ‘Incorporated’ within the business name for a limited liability company would be inappropriate in almost all states, and in most cases would prevent the filing of the LLC documents from being accepted by the secretary of state. [ Read More… → ]