In today's complex and competitive world there is no greater way to protect yourself and your personal assets from the threat of lawsuits than by incorporating, whether you're a small business owner with no employees, or run a serious business establishment with hundreds. Incorporating is also a simple and legal way to cut your taxes, protect your privacy, lower your audit risk, raise capital, and much more. Read more...
Choose the name of your legal entity carefully. It is important for the chosen name to portray the image you want for your new company. Legally, the name you select must not be "deceptively similar" to any existing company, or must be "distinguishable on the record" of your state. Read more...
Once decided to become involved in a new business venture, how would you know which legal entity is the right for you? The choice of entity would influence many aspects of the life of your business, from taxation to liability limitation and more. Read more...
The following table gives side-by-side comparison of 3 most common forms of business organization: C-Corporation, S-Corporation, and LLC (Limited Liability Company): Read more...
Series Limited Liability Company (LLC) is a business entity that was introduced by the State of Delaware nearly nine years ago. The concept is innovative and based on the fact that several series or “cells” may be created within a single LLC. Read more...
Once you have decided to incorporate or organize your business as an LLC, you need to choose the state to your new legal entity. Naturally, for most business the choice would fall on their home state, i.e. the state where the company will do most of its business. Read more...
Delaware is famed to be the "incorporation capital" of America - more than 60% of Fortune 500 companies are incorporated in Delaware. The reason why so many Fortune 500 companies are drawn to this state is the fact that Delaware has an excellent body of corporate case law spanning 110 years regarding such matters as management/shareholder issues and mergers/acquisitions. Read more...
For years Nevada claims to be the "incorporating capital of the west", and to support that claim it has spent more than a decade developing the appropriate legal infrastructure. Determined to establish itself as a leader in incorporation, Nevada had completely revised its Corporate Code in 1987, and again in 1991, making the entire incorporation process quicker and more efficient, with greater liability protection than ever before. Read more...
Few people know that little fact, but it was Wyoming that invented the American LLC in 1977, as it was modeled after the 1892 German company law known as Gesellschaft mit beschrnkter Haftung (GmbH). Nevada and Delaware copied Wyoming's LLC and profited from it most through better marketing. Read more...
It is commonly recognized today that Delaware, Nevada and Wyoming can all be called "incorporation friendly" states due to their corporative laws and relatively low (or non-existent) fees and taxes. However, how would a person choose between the three? Read more...
The best way to explain limited liability is this - you risk what you put in. In other words, limited liability is a way to make sure that a person who is engaging in business does not risk his or her personal possessions in case the business fails. Any investor, partner, or member of the company that by law has limited liability cannot be made responsible for any unfulfilled company obligations and debts that are more than the amount that the person has invested. Read more...
If you are a business owner, one of the most significant reasons to incorporate or form a limited liability company ("LLC") is to protect your personal assets from a business creditor's claims against your company. This ability of a properly-formed and maintained company to shield its owners from personal liability is sometimes referred to as the "corporate veil." Under certain circumstances, however, business creditors may be able to successfully make a claim against a business owner's personal assets or "pierce the corporate veil." Read more...
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