Before incorporating your business, it’s important to know the differences between the various types of corporations. Each type features various filing requirements, tax consequences, and implications for professional liability. These are the common corporation choices for businesses:
- Professional Corporation is a corporation comprised of a group of licensed professionals practicing in a specific field such as medicine, architecture or law.
- C or S Corporations involve filing standard corporation forms. “C” corporations have taxes processed through the corporation, while “S” corporations require the involvement of shareholders in tax issues.
- Close Corporations means ownership and direction of the corporation is controlled by a limited number of individuals.
- Non-Profit Corporations are businesses engaged in charitable activities and may enjoy certain tax advantages.
Evaluate the advantages and disadvantages each type of corporation as it applies to your business, especially when it comes to corporate tax laws.
Define What A “Delaware Corporation” Is?
States such as Delaware are considered “corporate haven” states because their laws offer corporations more advantages than others. One key advantage for corporations that file for registration in the state of Delaware are taxation benefits.
A company that is filed in the state of Delaware is called a “Delaware corporation.” These companies don’t need to limit their business activities within Delaware. They may conduct their business elsewhere while also reaping the benefits of being incorporated in Delaware.
Must I Incorporate My Business?
Many small businesses register as a partnership rather than a corporation to avoid the complex filing process involved in incorporation. This enables the company to begin operations without the time and expense involved in corporate registration.
Do I Need a Lawyer For Filing Corporation Papers?
Hiring one of our Coachella Valley corporate attorneys is a smart idea to avoid any legal problems when filing incorporation forms. Your Coachella Valley corporate attorney can offer expert legal advice and guidance on how to properly file documents for the type of corporation that best benefits your company. As any legal disputes arise, having a corporate attorney of record protects your rights and interests should you need to file a lawsuit or respond to other legal issues.
