Florida Incorporation $160.00

 What is a Corporation or a S-Corp?

A corporation is a separate legal entity that exists independently from its owners. A corporation is created & comes into existence when articles of incorporation are filed with the prescribed fees, and accepted by the proper state authority.

What is the Structure of a Corporation?

A corporation is owned by stockholders. While stockholders do not directly manage the corporation, they influence corporate decisions through indirect actions such as electing and removing directors, approving or disapproving amendments to the articles of incorporation and voting on important corporate decisions.

The members of the Board of Directors are responsible for managing the affairs of the corporation. Usually, directors make only major business decisions, however they supervise and appoint officers who make the day-to-day business decisions of the corporation.

Officers are responsible for the everyday management of the corporation. Typically, officers are appointed directly by the Board of Directors.

A stockholder may serve on the Board of Directors and also be an officer of the corporation. In fact, in Florida one person is enough to form a corporation, and that person can be the sole officer, director and stockholder.

What are the Advantages of incorporation?

The most important advantage of incorporation is that it gives its stockholders limited liability. Since the corporation is a separate legal entity, its stockholders are protected from the debts and liabilities of the corporation.

Other advantages:

• A corporation has unlimited life. If an owner dies or sells his interest the corporation will still continue to exist and do business.
• Ability to easily establish insurance and retirement plans.
• Ownership of corporation is easily sold or transferred through sale or transfer of stock.
• Capital can be raised through sale of stock.
• A corporation has centralized management which may remain in place after sale of business.

No, an attorney is not a legal requirement of forming a corporation. A certain knowledge is necessary in order to properly file. We can form your corporation, and save a substantial amount of money you would  otherwise pay an attorney. However, if you need legal advice please  consult an attorney.

How Many Directors are necessary?

A corporation is only required to have one director, however you are permitted to have more.

What is a Registered Agent and is one needed?

In Florida, an individual or service company must be responsible for receiving important legal and tax documents. This service is provided by an “agent” of the corporation who is “registered” with the division of incorporations. Thus, the term “Registered Agent.” The registered agent must have a valid street address within the state, and be available during normal business hours to receive documents.
The services performed by a registered agent may include:

• Receiving and forwarding legal documents.
• Receiving and forwarding franchise tax and annual report forms.
• Accepting and forwarding service of process.

What is an S Florida Incorporation?

An S Corporation is merely a corporation which has elected a special tax status. This tax treatment permits the income of the corporation to be treated like the income of a partnership or sole proprietorship in that the income is “passed through” to the shareholders. Thus, shareholders report the income or loss which is generated by an S Corporation on their individual tax returns. Under these circumstances the “double taxation” potential is avoided.

In order to be considered an S Corporation, the stockholders of a properly filed corporation must elect such status within 75 days of formation for the current tax year, or at any time during the preceding tax year. This election is made by filing Form 2553 with the IRS.

To qualify for S Corporation status:

• Must be a domestic corporation.
• Only one class of stock.
• Not more than 35 stockholders.
• Stockholders must be individuals, estates or certain trusts.

We provide this form at no additional charge with every incorporation.

 What is a Federal Employer Identification Number?

Once the corporation has been formed and is ready to do business, it is the time to apply for a federal employer identification number (EIN). Generally, any corporation doing business in the U.S. is required to have an EIN. In fact, the EIN is necessary when filing tax returns and for establishing bank accounts.

A Federal Employer Identification Number is included with every order.