FAQ
Corporation or LLC?
Where to incorporate?
May a Corporation or LLC do business in multiple states?
What are Tax Advantages of a Corporation or LLC?
Corporation or LLC ?
Corporations Information
What is a corporation? A corporation is business ownership structure authorized by state law that allows a business to organize as a separate legal entity from its owners. Like an individual, it can carry on business (or other activities), can sue or be sued, and (unless it is non-profit) can issue shares of stock to raise funds with which to start a business or increase its capital. A major benefit of a corporation is that it limits the personal liability of the owners for claims against the corporation, unless they commit fraud.
Do I need an attorney to incorporate a business? No, an attorney is not a legal requirement. IBS Corporate Services will prepare and file all the paperwork necessary to form your new corporation. Simply fill out our online order form and we take care of the rest. However, if you have any legal questions or are uncertain as to which entity is best for you, we urge you to consult with your attorney or accountant before making a final decision.
What is an S Corporation? An S Corporation is simply a C Corporation (also known as a standard business corporation) that files IRS form 2553 to elect a special tax status with the IRS. The same filing procedure is used for both types of businesses within the State. However, an S-Corporation must file an additional tax form that will give the S-corporation a special tax status with the IRS. This special tax status enables S-corporations to avoid paying corporate income tax. C-corporations must pay corporate income tax.
What is a Non-Profit Corporation? A non-profit corporation is designed for businesses engaged in charitable, religious, educational or scientific activities that benefit society in general. The net income of non-profit corporations must be used to further the not-for-profit goals of the corporation, not to enrich individual officers, members or directors. Most non-profit corporations have either tax-exempt or 501(c)(3) status, which exempts them from paying taxes on their income. To get either of these tax designations, an Application for Recognition must be filed by the client (or his attorney) with the IRS and be approved.
What is the difference between "par" and "no par" stock, and how much stock do I need? Par value stock has a stated value on its face. No par value stock has no stated value and its worth depends on what an investor is willing to pay. Unless we are instructed otherwise, IBS Corporate Services always requests the minimum amount of authorized shares of no par value stock, so you qualify for the minimum incorporating fee or minimum annual franchise tax.
What is a registered agent? The state requires that a corporation appoint a Registered Agent in the state where the company is formed. The registered agent is responsible for acceptance of any legal service of process (notice of litigation) document, and also serves as a local contact for the Secretary of State. This Registered Office must be a physical address, and NOT be a post office box. For your privacy, we can provide this service for you.
What is a Corporate Kit? Our corporate kits help keep your corporation organized, and in compliance with the latest requirements. The corporate kit includes a personalized binder with organizational minutes, bylaws, customized steel corporate seal, stock certificates, and a stock ledger all organized with dividers. You can choose from different types and designs.
What information do I need to provide to incorporate? To incorporate your business we need the name and address of the company, the name and address of the director/s and officers, and few minutes of your time to fill out our online form.
How long does the process take? Processing time vary from state to state. We process all corporate filings on an expedited basis so that you can benefit from the fastest service possible. You can see actual processing times in our online order form or contact us to see how long your State will take. You can also check the orders status online.
How do I start the incorporation process? All you need to do is complete the online order form and IBS Corporate Services will prepare and file the necessary documents to incorporate your business. It takes just few minutes to start the process. We will send a confirmation email within one business day. Depending on the state of incorporation and services requested you may or may not have documents to sign. Just follow the simple instructions in the confirmation email. We will contact you upon completion and have your official documents delivered to you as soon as possible.
LLC (Limited Liability Company) Information
What is an LLC? A Limited Liability Company is a relatively new and flexible business ownership structure. The LLC offers its owners the advantage of limited personal liability (like a corporation).
Do I need an attorney to form an LLC? No, an attorney is not a legal requirement. IBS Corporate Services will prepare and file all the paperwork necessary to form your new LLC. Simply fill out our online order form and we take care of the rest. However, if you have any legal questions or are uncertain as to which entity is best for you, we urge you to consult with your attorney or accountant before making a final decision.
What is the difference between members and managers? The members of an LLC are its owners. The managers are appointed by the members of an LLC to manage the business. Members of an LLC can manage it and it that case the LLC is defined as "member managed".
What is a registered agent? The state requires that a corporation appoint a Registered Agent in the state where the company is formed. The registered agent is responsible for acceptance of any legal service of process (notice of litigation) document, and also serves as a local contact for the Secretary of State. This Registered Office must be a physical address, and NOT be a post office box. For your privacy, we can provide this service for you.
What is an LLC Kit? Our LLC Kit will help keep your Limited Liability Company organized, and in compliance with the latest requirements. The LLC kit includes a personalized binder with organizational minutes, operating agreements, customized steel LLC seal, members certificates all organized with dividers. You can choose from different types and designs.
What information do I need to provide to form an LLC? To form your LLC we need the name and address of the company, the name and address of the members, and few minutes of your time to fill out our online order form.
How long does the process take? Processing time vary from state to state. We process all LLCs filings on an expedited basis so that you benefit from the fastest service possible. You can see actual processing times in our online order form or contact us to see how long your State will take.You can also check the orders status online.
How do I start the LLC formation process? All you need to do is complete the online order form and IBS Corporate Services will prepare and file the necessary documents to form LLC. It takes just few minutes to start the process and submit your filing. We will send a confirmation email within one business day. Depending on the state of incorporation and services requested you may or may not have documents to sign. Just follow the simple instructions in the confirmation email. We will contact you upon completion and have your official documents delivered to you as soon as possible.
Where to incorporate?
This is one of the most common questions for businesses wishing to form a corporation or LLC. It's usually best to incorporate or form a limited liability company in your home state however, an entity may elect to incorporate outside the state in which the corporation conducts a majority of its business and choose to incorporate in any of the 50 states or the District of Columbia. It is typically the least complicated, if you only plan to operate the business in your home state. You avoid paying franchise taxes and filing annual reports in more than one state and it usually costs less to incorporate locally. But you may miss out of the advantages of forming a corporation or LLC in Delaware or Nevada, which are incorporation friendly states.
Due to their unique incorporation laws and favorable tax policies, certain states are well known as favorable homes for corporations. If you'll be doing business in multiple states, you may want to consider incorporating in Nevada or Delaware.
Other popular States for Incorporation are Arizona, California, Florida and New York.
May a Corporation or LLC do Business in multiple states?
Many companies conduct business throughout the U.S. and abroad. A corporation or LLC having business locations in multiple states may form a corporation or LLC in a single state, then "qualifies to do business" in other states. This means companies must formally register, file annual reports and pay annual fees to obtain authority to conduct business in those states; and benefit from the laws of the state.
IBS Corporate Services can assist you in qualifying your corporation or LLC and keeping track of corporate filing requirements in any state you choose
What are Tax Advantages of a Corporation or LLC?
Corporations and LLCs can take advantage of tax savings options that are not available to sole proprietorships or partnerships. For example, corporations can establish pension, profit-sharing and stock ownership plans, which can lower the corporation's taxable income. Medical, life and disability insurance premiums are also completely tax deductible for corporations. Corporations can raise capital by issuing stock,bonds or other securities. Corporations and LLCs are the most enduring form of business structure. If a corporation owner dies, their portion of the business can be transferred quickly without interruption of the corporation's operations. Estate and family planning is simplified since shares of a corporation can be easily distributed to family members. Corporations and LLCs often experience a greater ease in doing business. Many stores and banks favor corporate accounts and offer discounts.
