Individuals must research this question on their own and should consult a lawyer and/or tax professional in making the decision. The factors to be considered include tax issues, liability issues, capital needs and the type of business, among many others. If a decision is made to form a corporation, the staff of the Corporations Division can assist with the process of incorporation.

Do you plan on being a sole proprietor or will you create an entity for your business? Sole proprietorships are the most popular form of business entity. According to one statistic, 72% of all US businesses are sole proprietorships. I encourage the formation of entities, such as a Single Member Limited Liability Company (SMLLC) or S corporation, in order to provide limited liability protection for its member or shareholder.

Form your corporation and open a corporation bank account. Then decide whether to sell, loan or contribute your existing business assets to your new corporation. Read the question and answer just above. It applies here too. If your existing unincorporated business assets are not significant, you don't really need to do anything after you incorporate. Sell. If you decide to sell an asset to your corporation, make sure your corporation pays, or agrees to pay, the fair market value of the asset.

Unfortunately, no business is safe anymore from lawsuits. The United States is the most litigious country in the world. In 1992 over 19 million civil lawsuits where filed in this country alone. This trend has been continuing and increasing since then. With the low costs of incorporating, it doesn't make sense not to do so considering the great risks one takes by being unprotected and exposed to litigation.

Yes. You do not have to be a U.S. citizen or legal permanent resident to incorporate a business in the United States. However, this does not mean that you have a right to work for your corporation. You will still need to get work authorization or some other legal status in order to legally work in the United States.

Once the decision to incorporate your business has been made, the legal process begins with the preparation of a certificate of incorporation. Whereas in the past this was prepared by three or more legally qualified individuals - today, only a single incorporator is needed. The incorporator may or may not be a person who will own stock. The state is likely to have a standard form for incorporating a small business.

BDC provides financing and consulting services, but does not incorporate or register companies. An excellent source of information on the 4 types of businesses in Canada can be found at the Canada Business Service Centres Web site.

The first step is to form a corporation. Than get a Federal employer identification number (FEIN) for the corporation. Next, open a corporation checking account using the corporation's new FEIN. With a corporation checking account you and your new corporation are ready to start doing business. When you incorporate through us, we take care of these matters for you except opening your bank account.

A corporation is not required to incorporate in the state in which it operates; therefore you can incorporate in any of the 50 states. There are many considerations involved in deciding where to incorporate, including the cost of incorporation, tax laws, and general laws governing the actions and liabilities of corporations. You can choose to incorporate in the state that is most advantageous to you.

Answer: Incorporation does make sense due to limited liability concept, splitting income, lower tax burden etc. In case you require assistance as to how to incorporate/tax implications as a result of incorporation, please drop-by at any Softron location or call us at 905-273-4444. Our experienced, courteous staff will be happy to assist you.