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Characteristics of A Corporation

The corporation is one of the different entity types to start a business in the USA. There are many reasons to conduct business under a corporation and few are discussed below.

 

  • The primary reason to register a corporation to do business, it separated business and the personal assets and additionally, it shields to the stockholders' personal assets.

  • A corporation issues stocks to the corporation's stockholders' and there is no limit to inherit stocks and issue to the stockholders.

  • A corporation limits the stockholder's personal liability.

  • A corporation first pay taxes on the corporate level, then the leftover dividend transfers to the stockholders to pay taxes on the income tax returns.

  • A corporation is generally registered with the secretary of state.

  • A corporation has a provision to either select fiscal or calendar year to file taxes.

  • The profit in the corporation can be deferred to pay in a future year, if there is an specific plan to spend corporation' s profit.

  • A C Corporation generally files a certificate of incorporation with the state.

  • A minute meetings and bylaws are prepared to maintain the corporation.

  • A corporation is renewed yearly, every after two years and Decennial, that varies in each state.

  • An annual report, statement of information, decennial report or a biennial statement is filed on or before the due date to keep a corporation active.

 

What information is required to register a corporation in the USA?

 

Generally, the following information is asked by an applicant to register a corporation with the secretary of state.

  • Name of all the stockholders

  • Registered agent address where the business will be conducted.

  • Name of the corporation

  • Number of stocks issue to a corporation

  • A social security number, to get an Employer Identification Number and the social security number is not required for a Non US Resident to incorporate business in the USA.

  • Signature of at least one stakeholders on a certificate of incorporation.

  • Corporation name must be available in order to register a corporation. The secretary of state does not issue same name to the other applicants.

 

How long does the state take to file a corporation?

 

Generally, most states files the articles of incorporation same day, but it varies on each state load or a back-lock.