FAQs About Corporations
Is my Corporate Name Available?
Check the name in the state that you want to form the company. Once the company has been filed and accepted by the state you can then use the name.
Bizniz Tools can not guarantee whether or not your corporate name infringes on the rights of another business owner.
What is a Registered Agent?
It is a requirement to have a Registered Agent. Usually someone from the company will act as the Registered Agent provided that they have a street
address in the state of incorporation. However if you do not have a street address in the state of Incorporation we can appoint a Registered
Agent.
What are Articles of Incorporation?
The Articles of Incorporation is a document filed with the Secretary of State to form the corporation. The documents specifies information such as the Name of Company, Address, Registered Agent and Office, Number of Authorized Shares, Names and Address of Initial Directors, and additional provisions can be added provided they conform to state law.
What is a Shareholder?
The shareholders are the owners of the corporation. The owners can be individuals or other entities (such as Corporation, LLC or other
entities).
What is a Director?
The Directors of the Corporation are appointed by the shareholder to represent the shareholders interests and to approve major corporate
decisions.
What are the Officers?
The Officers of the Corporation are the President or CEO, Vice President, Secretary and Treasurer. The Officers are appointed by the Directors. The job of
the Officers is to run the company and manage the day to day operations. In most states one person can hold all of the Officer Positions.
Can One Person be the Shareholder (Owner), Director and Officer?
Yes in most states one person can hold all of the above positions and it is not uncommon with small closely held corporations.
What is a Federal Employer Identification Number?
The Federal Employer Identification Number is also known as the Fed ID, Tax ID, Federal ID Number and or Employer ID. The Federal ID Number is a 9 Digit number similar to a Social Security Number. The Fed Id is issued for businesses so that they can file Tax Returns and open Business Bank Account.
Does the corporation have to authorize (have) and issue stock (shares) ?
Yes and Yes, the corporation must authorize shares in the Articles of Incorporation and issue the stock (shares) of the corporation to the
owners.
What is an S-Corporation?
An S-Corporation (Sub-Chapter S) is corporation that files IRS FORM 2553 listing the individual owners and number of shares owned. The S-Corp Election
allows the owners of the corporation to avoid DOUBLE TAXATION of the companies profits. The profit of the company is passed through to the owners of the corporation with the profits being taxed at the Corporate Level. The owners of the corporation receive a K-1 Profit or Loss statement and the profit is reflected on their personal return and taxed on the personal return.
There are limitations to the S-Corporation such as, not having more than 75 owners. Owners typically need to be individuals who are US Citizens or US
Resident Aliens and usually can not be another entity such as another Corporation. The S-Corporation can also only issue one class of shares.
Can I operate the business from home?
Typically a business can be operated from home but a business license is usually required. The business license can be obtained from the city or county
where the business is located. Types of Corporations.
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