Incorporation services

The process of incorporation varies from state to state, but usually requires submitting legal documentation to the state, known as Articles of Incorporation. There are many steps involved in company incorporation, such as selecting a business name, appointing directors, appointing a registered agent, obtaining an EIN, and filing documents. The process can be a lengthy one, which is why many businesses opt for third-party incorporation services.

Once incorporated, your business will be an official legal entity. You’ll have a host of new requirements to follow in order to keep your business in good standing, such as submitting annual reports and following new tax regulations. Corporate Creations can assist you with your business needs once you’ve incorporated to ensure you stay compliant.

There are various benefits of company incorporation. Alongside lower tax rates, by incorporating your business, you add a layer of protection to your personal assets. For example, if the company is sued or goes bankrupt, you won’t be personally liable.

Both an LLC and a corporation protect shareholders and owners from personal liability with regards to issues like bankruptcy, debt, and lawsuits. However, the two business types are run differently; corporations are owned by shareholders while an LLC is owned by one or more individuals (known as members). Ownership can be easily transferred in a corporation, but it is a little more complicated in an LLC since it will require the updating of the operating agreement. Corporations must have boards of directors in place to develop business-wide strategies, while LLCs offer more flexible management structures and don’t necessarily require boards. Moreover, the two business models differ in terms of income disbursement and taxation, with corporations being taxed at the corporate tax rate (unless they elect to become an S corporation), but LLC earnings being passed through to members, who themselves are then taxed.

Some business owners opt to form an LLC instead of a corporation because the operating model offers more flexibility. For example, there are fewer requirements to uphold; LLCs are not required to hold regular board of director meetings and collect minutes, and members can simply be made managers through the operating agreement. There are also more tax options available with an LLC; it can be taxed as a C corporation, S corporation, which can be extremely beneficial for single-member LLCs.