12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Orientation to Incorporation in Zip Code 61440

Orientation to Incorporation in Zip Code 61440


Many companies expect loyal customers without providing loyal service. This has been the visionary failure of countless corporations.
 
- Steve Maraboli


Forming a corporation limits the personal liability for business debts.

How to Form a Corporation

• File an "Articles of Incorporation" at the corporate divisions in the secretary's office of your state government.

• Create a corporate "bylaws" that states the basic rule that govern the ongoing decision or formalities of the corporate life.

• Issue stock certificates of the initial owners or shareholders of the corporation and document the ownership interest or the shares of stock in the business.


To retain the corporate status as a legal, separate entity, certain formalities should be observed by the owners of the corporation. This includes:

• Holding of directors' and annual shareholder meetings

• Minutes of meetings and agreement or decisions should be documented

• Signing of documents by the corporate officers and directors should be done under the name of the corporation

• Bank accounts are separate from the personal accounts of the owners

• Maintain a detailed financial records

• Income tax return should be filed separately

Limited Personal Liability

Personal assets of the people involved in the corporation are protected from the creditors. In cases where a corporation owes a creditor, your personal assets is protected because only corporate assets will be use to pay the debts. The only money you will likely end up losing, is the money you have invested in the corporation.

Exceptions to Limited Liability

There are situations where the owners' personal asset is not protected by limited liability. The owner of the corporation will be held personally responsible if:

• Directly and personally injured another person

• Personally guarantees a bank or business loan which the corporation fail to pay

• Fail to deposit withhold taxes from employees

• Intentionally engage in fraudulent causes that can harm the company

• Treats the corporation like an extension of his personal affairs and not as a separate legal entity

Corporation should be treated as a separate legal entity. This is the very important especially in cases involving court proceedings. The court can rule that the corporation does not exist and the owners should not be shielded from their personal liability for their actions. This is likely to happen if you did not follow the routine corporate formalities such as:

• Adequately investing money in the corporation

• Formal issuance of stock to the initial shareholders

• Holding of meetings regularly of the directors and shareholders

• Keeping a separate business records and transactions from those of the owners


Liability Insurance

Forming a corporation can protect your personal assets but it should not be an excuse for not getting insurance. Insurance can be a good investment that can protect the company from lawsuit and claims. The risk of doing business can be minimized by getting a solid liability insurance policy. Any claims made by the corporation can be covered by the insurance as long as the corporation is also doing its part like paying the bills and other corporate responsibilities.

Paying Corporate Income Tax

Corporate income tax refers to the taxes paid by the corporation on whatever profits they left after it has paid all the available expenses like salaries, bonuses, overhead and other expenses. It uses a tax return form to be filed to the IRS and pay taxes at a special corporate rate tax. In terms of the owner, if he is working for the corporation, he should be paid a salary and possible bonuses like other employees and pay their taxes using their own personal tax return.

Corporation shareholders can choose to elect an S corporation status by filling at the IRS a tax Form 2553. Using this form can mean that the corporation will be treated like a Partnership where business profits and loss will be reported on the each shareholder‘s individual tax returns.

 
Personalize & Print a Free IL Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free IL Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Zip Code 61440
Kathleen Lane Law Offices
608 S Washington St
Naperville, IL 60540
(630) 778-9982
General Practice Attorneys, Attorneys, Legal Service Plans
Trowbridge Bradley Law Office
4753 N Broadway St # 1012
Chicago, IL 60640
(773) 784-9900
General Practice Attorneys, Attorneys
Divorce Financial Strategies
475 River Bend Rd Ste 200A
Naperville, IL 60540
(630) 753-9895
Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans, Divorce Assistance
Stephen L Hoffman
920 W Windsor Ave
Chicago, IL 60640
(773) 944-9737
General Practice Attorneys, Attorneys
Freeman Deborah K
608 S Washington St # 207
Naperville, IL 60540
(630) 961-9648
Real Estate Attorneys, Attorneys, Legal Service Plans
Matsas Dean
5153 N Broadway St
Chicago, IL 60640
(773) 907-9600
Attorneys, Legal Service Plans
Licker Law Firm LLC
3600 Nameoki Rd
Granite City, IL 62040
(618) 977-9560
Attorneys, Business Bankruptcy Law Attorneys, Bankruptcy Services
Ann Edmonds Law Office
333 Center St
Naperville, IL 60540
(630) 420-9290
General Practice Attorneys, Attorneys, Legal Service Plans
Bauer Jr Gerald
400 N Schmidt Rd
Bolingbrook, IL 60440
(630) 226-9111
General Practice Attorneys, Attorneys
Blank Gary L
34 Westover Rd
Highwood, IL 60040
(847) 681-8891
Attorneys Referral & Information Service
Gleason & Gleason Bankruptcy
498 W Boughton Rd Ste 201
Bolingbrook, IL 60440
(312) 445-8825
Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
Diana Arellano Law Office
1054 W Lawrence Ave
Chicago, IL 60640
(773) 506-8700
General Practice Attorneys, Attorneys
Vlazny III Adalbert L
608 S Washington St # 210
Naperville, IL 60540
(630) 357-8668
Attorneys, Legal Service Plans
Lueders Robertson & Konzen
1939 Delmar Ave
Granite City, IL 62040
(618) 876-8500
Attorneys, Legal Service Plans
Knobloch John
608 S Washington St
Naperville, IL 60540
(630) 674-8440
Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Att
Kontoh Anita
260 S Schmidt Rd Ste A
Bolingbrook, IL 60440
(630) 783-8292
General Practice Attorneys, Attorneys, Legal Service Plans
Brian Kocsis Law Office
222 S Mill St # 200
Naperville, IL 60540
(630) 355-8238
General Practice Attorneys, Attorneys
Jagel Peter H
209 E Jefferson Ave
Naperville, IL 60540
(630) 355-8070
General Practice Attorneys, Attorneys
Canulli Michael D
564 S Washington St
Naperville, IL 60540
(630) 717-7877
Attorneys, Legal Service Plans
Philip R. Nathe
552 S Washington St
Naperville, IL 60540
(630) 416-7600
Attorneys
Fish David
55 S Main St # 341
Naperville, IL 60540
(630) 355-7590
General Practice Attorneys, Attorneys
Zahour Alonzo H
235 Remington Blvd
Bolingbrook, IL 60440
(630) 923-7532
Traffic Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Bankruptcy Law A
Nighohossian Casper S
1326 Niedringhaus Ave
Granite City, IL 62040
(877) 955-7144
Attorneys, Family Law Attorneys
Schooley Thomas E
2038 Edison Ave
Granite City, IL 62040
(618) 452-7122
Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US