Corporations

What is a Corporation?

A Corporation is a legally recognized “separate person,” established by state law to operate businesses and organizations.  A Corporation’s main purpose is to insulate its shareholders, directors, and management from personal liability. 

What types of Corporations are there?

There are several types of Corporations recognized by state law, including:

• For Profit Corporations:
  • Chapter C Corporation:  A legal entity liable for its own debts and pays its own taxes.
  • Chapter S Corporation:  A Corporation with special tax status granted by the IRS.
• Nonprofit Corporations:
  • A Corporation in which the shareholders/members do not seek financial gain.  Often established to serve charitable, educational, or religious purposes.

How are Corporations created?

A corporation is formed with the production and filing of several important documents with the state Secretary of State’s office.  Required filings may include:

• Articles of Incorporation
• Statement Appointing an Agent
• Statement of Trade Name

What else do I need to do to create a Corporation?

Other documents should be drafted for a Corporation, including but not limited to Articles of Incorporation, and Company Bylaws.  Although these documents are written confirmation of a Corporation’s good standing in the state records, they do not replace corporate management’s ongoing duty to operate the business within the confines of state authority, and to produce proper and periodic accountings to the state, such as  minutes of official corporate meetings, and tax reporting.

Is creating a Corporation right for my business?

A corporate structure may be the appropriate way to go for your new or existing business, but there are also other options for you to consider.   Let our firm assist you in looking at and choosing the right structure for your business.  We can also assist with the formation of your chosen business structure, drafting and filing the appropriate documents, and the continued reporting maintenance, as needed.