What is a corporation?
A corporation is a separate legal entity that exists independently from its owners. A corporation comes into existence when articles of incorporation are properly created and maintained, filed with the prescribed fees, and accepted by the Georgia Secretary of State. Any entity that transacts business in Georgia as a corporation is required by Georgia Statutes to file documents of incorporation with the Georgia of Georgia and pay the filing fee. Benefits of Corporations: incorporating your business is limited liability. If you maintain a corporation’s legal status properly, and avoid personally guaranteeing the corporation’s obligations, the corporation, and not you personally, would be solely responsible for its obligations. • The single most important reason people cite for forming a corporation when they do business is to safeguard the personal assets of the owners – that is, the shareholders or stockholders of the corporation – against potential claims from creditors. Sole proprieto
A corporation is a separate legal entity that exists independently from its owners. A corporation comes into existence when articles of incorporation are properly created and maintained, filed with the prescribed fees, and accepted by the Florida Secretary of State. Any entity that transacts business in Florida as a corporation is required by Florida Statutes to file documents of incorporation with the State of Florida and pay the filing fee. Benefits of Corporations: • Limited Liability – One primary benefit of incorporating your business is limited liability. If you maintain a corporation’s legal status properly, and avoid personally guaranteeing the corporation’s obligations, the corporation, and not you personally, would be solely responsible for its obligations. • The single most important reason people cite for forming a corporation when they do business is to safeguard the personal assets of the owners – that is, the shareholders or stockholders of the corporation – against pote
A corporation is a separate legal entity that exists independently from its owners, known as shareholders. A corporation is formed and begins its existence when the proper documents and filing fees are submitted to the state, and accepted by the secretary of state. A corporation is owned by shareholders, the individuals who own stock in the corporation. Shareholders do not directly manage the corporation, but they influence corporate decisions by electing and removing members of the board of directors, and voting on other important corporate decisions. The Board of Directors is responsible for making the major decisions for the corporation. Most importantly, the members of the Board of Directors are responsible for electing the officers of the corporation. The officers of the corporation are responsible for making the everyday management decisions of the corporation. Typically, the officers are elected and appointed by the Board of Directors. In Florida, most small corporations only ha
A corporation is a legal entity that is separate and distinct. It is its own “person”; it can open a bank account, own property and conduct business under its own name. The main advantage of a corporation is that its owners (known as stockholders or shareholders) are not personally liable for the debts/liabilities of the corporation. Let’s say your corporation gets sued and it has to file bankruptcy, then the owners are not required to pay the debt with their own personal money. If the corporation’s assets are not enough to cover the debts, the creditors can’t go after the stockholders, directors or officers of the corporation to recover the unpaid debts. A major disadvantage of a corporation is double taxation. A traditional corporation is known as a C-corporation. This type of corporation pays a corporate tax on its corporate income, this is the first tax. Then, when the C-corporation distributes profits to the stockholders, the stockholders then pay income tax on those dividends whi
