THE BENEFITS OF FORMING A CORPORATION
Owned by shareholders, a corporation is an independent legal entity. Instead of the company automatically dissolving when an owner decides to leave, the owners must vote to go out of business. Because the business can sell stock, it will have a greater ability to raise capital. Corporations may also be able to attract better employees through stock options and competitive benefits. In addition to the benefits of having stock, choosing to turn your business into a corporation can be advantageous because it may offer limited liability benefits. The limited liability benefits can protect your personal property from debts and other actions incurred by the business.
Corporations also provide tax advantages. Owners only pay taxes on bonuses, dividends and salaries, and additional profits are taxed at a corporate rate. Additionally, an S corporation can save your income from facing double taxation. Only the wages of employees are taxed, and the remaining income is considered a “distribution”, which faces less taxes.
THE DISADVANTAGES OF INCORPORATION
Although incorporation offers a variety of benefits, it may also have certain disadvantages for owners. Corporations can by expensive to create and run, and they can also be time-consuming as they are highly regulated and require increased paperwork. If you are interested in forming a corporation, you should speak with a Crown Point business lawyer to learn more its advantages and disadvantages for your unique situation.
HOW DO I FORM A CORPORATION IN LAKE COUNTY, IN?
The first step of forming a corporation is to file Articles of Incorporation with the Indiana Secretary of State with the proper filing fee. While you wait for your Certificate of Incorporation, Kent A. Jeffirs, Attorney at Law, PC can prepare your corporate book, which is where you keep your minutes or resolutions. Your corporate book also includes your bylaws, stocks and documentation of shareholders’ and board of directors’ meetings. If you are creating an S corporation, my firm can also help ensure that the Internal Revenue Service deadlines are met and that you apply for a Federal Employer Identification Number and Subchapter S election to identify your business to the IRS.
SEEK QUALIFIED BUSINESS REPRESENTATION IN CROWN POINT
With over 20 years of experience, I am well-equipped to assist you with the incorporation of your business in Lake County. In addition to my understanding of legal matters, I understand the financial aspects of business. I was the 2012 Chairman of the Board of the Crossroads Regional Chamber of Commerce, and I am prepared to assist you with your business matters. Instead of passing you off to a paralegal or legal secretary, you can rest assured that an experienced attorney will handle your entire case when you work with the firm.
Take advantage of my free initial consultation to learn more about the benefits of obtaining a Crown Point business attorney for your business needs or contact Kent A. Jeffirs, Attorney at Law, PC today!