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Frequently asked Questions about Corporations and Limited Liability Companies.

 

 

 

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Frequently asked Questions about Corporations.

 

  1. What is a Corporation?

  2. What are the advantages of a corporation?

  3. Do I need an attorney to incorporate?

  4. Naming the Corporation?

  5. What are the advantages of a
    S corporation?

  6. What services does K&K provide for me in a formation of my corporation?

  7. What do I get when filing for corp?

  8. How do I file for my Corporation?

 

Frequently asked Questions about Limited Liability Companies.

  1. What is an Limited Liability Company?

  2. What are the benefits of an LLC?

  3. What is the organizational structure of an LLC?

  4. Naming the LLC

  5. What do I Get when Filing for LLC

  6. What is a registered agent?

  7. What services does K&K provide for me in a formation of my LLC?

  8. How do I file for my Limited Liability Company?

 

What is a Corporation?

The corporation is a separate and distinct legal entity apart from the owners of the business.  A corporation can own property, enter into contracts, and conduct business under its own name.

 
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What are the advantages of a corporation?

A Corporation is a separate legal entity with its own identity separate and apart from its shareholders (owners).  As a separate legal entity, a corporation is responsible for its own debts.   Normally, shareholders, directors, and officers are not responsible for corporate liabilities.  If the corporation suffers losses, the corporation itself must bear those losses to the extent of its own resources, and not the personal assets of the individual shareholders. Thus, the corporation protects the owner of a business against personal liability. 

Other advantages include:

  • Sale of stock for the purposes of raising capital is often more attractive to investors than other forms of equity. 
  • A corporation can continue to exist after the death of its founders  Stock may be transferred so that owners can distribute their interest in the corporation without the corporation dissolving.
  • Corporations have many tax options available, including setting up pension, profit sharing, and stock option plans.
 
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Do I need an attorney to incorporate?

While you may consult with an attorney to form your corporation, it is not necessary. We will do all the work necessary to form your new corporation. Simply fill out our online order form and fax to 407-521-1904 or call 407-521-1919 to speak to and speak to a representative and leave the rest to us and save money on attorney’s fees.

 
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Naming the Corporation

The owner can chose any name for your corporation that you prefer, however, the name must not be the name of an existing corporation, i.e., the name must be distinguishable.  As part of our service, we will perform the preliminary name check for you.

Additionally, "Inc", "Co", "Incorporation", "Corporation",  "Company", "Limited", or "LTD" must follow the corporate name.

 
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What is a registered agent?

Most states require a registered agent. A registered agent is responsible for receiving any legal documentation on behalf of the corporation. 

Quite frequently, YOU can act as your own registered agent as long as your address is within the state that you are incorporating in.

There are other services that will charge you a service fee for not choosing them as a registered agent.

Not us!!

As a matter of fact, we encourage you to act as your own agent and, of course, there is no charge.

However, if registered agent services are required, we are able to assist in any state (as we frequently do in Nevada and Delaware for out of state residents).

Simply call 407-521-1919 to inquire.

 
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What are the advantages of a S corporation?

An S corporation is the election of a special tax designation which must be applied for and granted by the IRS to corporations that have already been formed.  This election, in general allows for the income of the S corporation to be taxed to the shareholder of the corporation as opposed to the corporation per se. 

The primary advantage of an S corporation is the avoidance of double taxation.  That is, the avoidance of payment of income tax on corporate net income, and then the payment of a further tax on the dividend income that is derived from the corporation.

Thus, an S corporation allows certain income, deductions, and losses to be passed through the S corporation to the individual tax return of each shareholder.

 
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What services does K&K provide for me in a formation of my corporation?

K&K will file all the all the paperwork and documents necessary to form your corporation. In addition our low fee also includes name search and availability and a payment of the state filing fees.

 
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What do I get when filing for corp

The corporate kit includes a customized binder with your corporate name and, custom corporate seal, 10 custom stock certificates with your corporate name, stock transfer ledger, minutes of organizational meetings and bylaws.  

 
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How do I file for my Corporation?

K&K will file and execute all the necessary paper work and documentation to file your corporation. Simply utilize our online order form or call 407-521-1919 to place your order over the phone

 
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What is a Limited Liability Company?

An LLC or a Limited Liability Company is a separate legal entity (business structure) from the owners of the LLC. An owner of an LLC is frequently referred to as member.

An LLC is frequently referred to as a hybrid of a corporation and a partnership. The members of a limited liability company are shielded from personal liability and profits and losses may pass directly to the members without taxation of the LLC itself.

 
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What are the benefits of an LLC?

As mentioned above, an LLC offers primarily two benefits. First and foremost, an LLC provides the members protection from personal liability. Additionally, an LLC provides certain tax benefits. That is, an LLC allows for pass through taxation.

An LLC is similar to a corporation because it has a) limited liability; b) free transferability c) continuity; d) centralized management.

The taxation of a limited liability company is comparable to an S corporation.   However, unlike an S corporation an LLC can have an unlimited number of shareholders or "members" as they are known in an LLC.  Additionally, there are no restrictions on who is a shareholder as there may be with an S corporation.

Thus, an LLC is similar to a corporation because it allows for protection from personal liability and simultaneously it is similar to a partnership because it allows for pass through taxation. Therefore, an LLC is commonly referred to as "hybrid corporation/partnership".

 
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Naming the LLC

The owner can chose any name for your LLC that you prefer, however, the name must not be the name of an existing LLC, i.e., the name must be distinguishable.  As part of our service, we will perform the preliminary name check for you.

Additionally, "LLC",  or "Limited Liability Company" must follow the entity name.

 
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What is the organizational structure of an LLC?

The company may be directly by the members, or members may designate a manager. If management is by the members then each member is a manager of the company.

 
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What do I get when filing for LLC

The LLC kit includes a customized binder with your LLC name, custom LLC seal, 10 custom membership certificates with your LLC's name, operating agreement and transfer ledger.

 
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What services does K&K provide for me in a formation of my LLC?

K&K will file all the all the paperwork and documents necessary to form your LLC. In addition our low fee also includes name search and availability and a payment of the state filing fees. 

 
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How do I file for my LLC?

K&K will file and execute all the necessary paper work and documentation to file your Limited Liability Company. Simply utilize our online order form or call 407-521-1919 to place your order over the phone.

 
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