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What Is A Business Corporation

® Says: Education Is Your Best Defense Against Poverty

To Take Advantage of What America Really Has To Offer, You Must ? "

Own A Business Corporation, Or A 501-C3 Not For Profit Organization

Most businesses today use [LLC] corporations. What is a limited liability corporation? A LLC is a combination of a corporation and a partnership which has become extremely popular in recent years. Like a corporation, a LLC has a legal existence separate from its owners; and the owners and managers are not personally liable for the company's debts and obligations. Like a partnership or an S-corporation, an LLC is automatically treated as a pass-through entity for tax purposes. Your LLC does not pay taxes; the LLC's income "passes through" to you personally and you are taxed on an individual basis. Key elements of a Delaware LLC include:
A creditor of the owner of a Delaware LLC cannot seize the assets of the LLC.
A single-member Delaware LLC is automatically disregarded as an entity separate from its owner and includes all of its income and expenses on the owner's 1040 tax return.
A Delaware LLC with two or more members is treated as a partnership.
There is unmatched contractual flexibility with a Delaware LLC. Delaware law provides rules only on matters on which the members have failed to agree. This is known as "freedom of contract" and nowhere is it stronger than in Delaware.
Personal liability is limited for owners and managers to the amount of their investment in the company, just like a corporation.
Non-U.S. owners of a Delaware LLC with no U.S. source income pay no U.S. taxes whatsoever
Corporations safeguards your personal assets against creditors and lawsuits. Without a corporation or LLC, anyone suing your business is really just suing you personally, putting everything you own (house, cars, bank accounts) at risk of being seized in a judgment. Sole proprietors and general partners in a partnership are personally responsible for all the liabilities of the business, such as loans, accounts payable, and potential lawsuits. In a Delaware corporation, however, stockholders, directors and officers typically are not liable for the company's debts and obligations. You can also use a Delaware corporation or LLC to hold your personal assets like a house, car or boat. If you are ever personally involved in a lawsuit or bankruptcy, these assets cannot be seized.
A business corporation is like a separate person working and looking out for you to protect you from harm and make money for you. Say you made a million dollars and you only had, say $2000 dollars in your {LLC} business bank account. If some one decided to sue you, all they could get from your corporation would be the $2000 dollars you had in that corporations businesses bank account and/or what ever your business insurance policy limit was. You might have a Mansion worth 15 Million Dollars and 3 Million Dollars more in your personal bank account but the person suing you can not touch any of it because it was not listed under your business corporations name. In short a business corporation name protects you from losing everything that you worked so hard to build during your lifetime. A business corporation is like an umbrella that protects you in the rain shielding you from personal harm by not getting wet and keeping you dry which allows you to take fully advantage of the IRS tax laws to write off products and services and obtain below wholesale prices on products and services that you need for your growing business and allows you to sell those same products and services at a profit that you could never obtain without owning a business corporation. Yes you can sell products and services at a profit without a business corporation but you will not be able to take full advantage of the IRS tax laws and other privileges granted only to business corporation owners around the world.

Let's say presently you own a home and you are paying $2000.00 Dollars or more a month for your home mortgage. You presently can't write anything off because you don't have a business corporation or not for profit corporation to receive the tax write offs under. So you file for a business corporation or a 501- C3 not for profit corporation and list it as a home business. Now you are able to take advantage of all of the United States tax laws by writing off your home mortgage and every piece of furniture you have within your house. By incorporating you will save thousands of dollars a year on the house you purchased and also save money on what ever your home furniture you brought, let's say the furniture can be written as a tax write off saving you another $5000.00 Dollars a year for grand total of.................... $29,000.00 dollars a year in tax write offs "WOW". In short you don't have to pay any taxes on any office equipment, furniture, supplies, your mortgage and it gets even better.

If you are presently leasing a car from an auto dealer or used car lot for say 2 - 3 year's and up. Did you know that your throwing money out the window, " SAY WHAT " , " That's Right " ! What you should do if you want to throw money out the window is ? Wait for The WEbMAster to get under your window ? Then Throw " ALL THE MONEY OUT THE WINDOW " and I'll put it to good use ! {Laughing & Smiling} The same lesson applies about what I told you before in section 3 of this page. If you are paying what ever amount per month for your car note you will now be able to receive a yearly tax write off on that same car and your car then becomes almost a "FREEBIE " and you can also write off the gas, car repairs and parts purchased for your car too !
"WOW" ! A little knowledge can be a dangerous weapon in the right hands.
Remember Education Is Always Your Best Defense Against Poverty

Most young people today have good credit, most do not know what they already have in their hands. Did you know if you happen to have good credit depending on the amount of credit you already have the small business administration will help write a business proposal, obtain a loan from a bank, and help guide you into business. The business of America is business, the government wants you to manage the business and hire people so the government can obtain taxes from them for the U.S. Treasury Department this is how the American system works. Most people do not know that the small business administration has set aside loans specifically geared towards minorities that will help you get into business immediately. Most young adults between the ages of seventeen and up can qualify for these loans with good credit and immediately get themselves into their own business but they must first attend a series of classes that the small business administration provides. This is one of the reasons why I built this website so I could provide the community, the hip hop generation and numerous young East New York and Brownsville residents guidance so they would be able to benefit from the business experience and knowledge that I have accumulated through time and increase the quality of life for themselves. If you would like more information e-mail me and I will direct you towards the right organizations and governmental agencies that will help you immediately to obtain your dreams .

What is a 501-C3 not for profit corporation a not for profit corporation enables you to apply for grant money from different foundations, local business owners, individuals, and from governmental agencies to fund local and nationwide community programs and special events. Churches are not for profit organizations that is the reason why they are able to collect money during church services to pay the salaries of their employees, buy needed office supplies and equipment for their church, and utilize the money for operating costs of their facility. The most important thing is that you must keep good accounting records so when the government does come to check your accounting books out the government is then able to follow the paper trail from bank withdrawal checks and bank deposit stubs to check and see what the organization really did with the money they received and where the money went. All not for profit organizations must file for quarterly reports during the year with the government to let them know how much money they receive during that quarter. Not for profit organizations do not have to pay taxes on any money they received for collected. A not for profit organization enables the donating party or business corporation to declare an IRS tax write-off with the government at tax time. This is how community programs are born by writing a program proposal in order to receive funding from City, State, Federal Governmental Agencies, corporations, local business owners, and individuals on a year round basis in order to survive. The CEO = chairman executive officers salary has no cap on it, plus a CEO's salary can increase with every program proposal that is granted to the organization depending upon how the board members write the corporate by laws in order for the corporation to function. A corporation's bylaws specifies the rules and regulations that the CEO must follow in order to run the corporation effectively and efficiently. If a not for profit organization gets into financial trouble the government can step in and take over the day to day operations of the not for profit corporation and take away governing powers from its founder and board members and put its own management team in to run the organization correctly if there is any misuse of funding. An example of misuse of funds is, if a not for profit organization writes a program proposal to sponsor a HIV AIDS program and is awarded the funding to operate that HIV AIDS program and the CEO and/or other corporate administrators misuse the funding to buy unauthorized materials or products not declared in the program proposal submitted. Example the CEO or other corporate administrators buy houses and cars instead of utilizing the grant funding designated to operate the HIV AIDS program and the money is utilized for other purposes. At this point the corporate bank account is ceased by the district attorney's office and everything that was given to the organization or purchased with the HIV AIDS grant funding money becomes the property of the not for profit organization. That's when the incoming government management team declares the right to take all office equipment and supplies and anything else listed in the accounting books that the corporation received money for to buy products and services. Is now under the control of the district attorneys office until the government sorts out the problem and finds a new management team to run the not for profit organization correctly.

Should I choose Delaware over Nevada to incorporate ? Incorporating in Nevada is not the best place to incorporate any more for several reasons. Number one because of its use of "bearer shares" and its current reputation as a haven for online betting and adult websites, Nevada corporations and LLCs have recently become the object of heightened scrutiny by federal regulators. Delaware's privacy and asset protection laws are actually stronger than Nevada's. For example, unlike Nevada, Delaware does not require the names of directors to be listed on the articles of incorporation. In addition, copies of your corporate bylaws are not required to be on file in the state of Delaware, as they are in Nevada. Delaware's Blue Chip image is reinforced by the fact that more than 50% of all U.S. publicly-traded companies are Delaware companies. In addition, Delaware now allows for conversion of corporate entities - LLCs can convert into corporations and corporations can convert into LLCs.

What kind of corporation is right for me
"C" Corp? "S" Corp? What kind of company is right for me? Review the following to help make your decision:
A Delaware "C" corporation is usually appropriate if:
There is any chance the owners might want to become an "S" corporation.
Several individuals or entities will be owners.
Owners plan to be profitable in the first several years of operation and plan to reinvest profits for growth.
Owners live in a state with an income tax.
A Delaware "S" corporation is usually appropriate if:
The company will experience start-up losses during the initial years of operation and the owner has ordinary income against which these losses can be deducted.
The company is a single owner entity.
The owner wants to extract most profits instead of reinvesting for growth.
Company does not expect to issue multiple classes of stock or have more than 75 stockholders.
A Delaware LLC is usually appropriate if:
The business is a partnership or several different entities own the business.
The company is used primarily to hold real estate or other income generating assets such as stocks.
The company has foreign investors.
What is a "C" Corporation?
A "C" corporation, often referred to as a "General Corporation," is simply a regular corporation that pays taxes directly to the IRS. When you order your Delaware corporation, you receive a "C" corporation. You then have up to 75 days to decide whether you want to turn your "C" corporation into an "S" corporation. Key Elements of a "C" Corporation:
Three tiers of power: Stockholders, Directors, Officers (Can be the same person)
No limit to number or type of stockholder.
Stockholders own the company and elect directors.
Directors elect the officers.
Officers run day-to-day operations.
Minority stockholders are not responsible for the company.
Can be "S" corporation if all qualifications are met.
Allows for limited liability of the owners/officers/directors.
Runs on a fiscal year, which may be designated by the board of directors, rather than on a calendar year.
Delaware requires no disclosure of corporate owners.
Profits are taxed at corporate rates on an 1120 return separate from the individual return.
Profits are not automatically distributed to shareholders and can be kept as retained earnings.
May deduct cost of fringe benefits to owner-employees.
What is an "S" corporation?
One of the possible drawbacks of a "C" corporation is that if you decide to distribute earnings as profits to shareholders, these profits are taxed twice; once at the corporate level, and again at the individual shareholder level if a dividend is declared. An "S" corporation is just a "C" corporation that has elected with the IRS to allow profits of the corporation to "pass through" to the individual shareholder (s). Therefore, these profits are taxed only once. Keep in mind that you have until 75 days after your company is formed to decide whether to make your "C" corporation an "S" corporation. The key elements of an "S" corporation are:
Avoids double taxation, like an LLC.
Profits and losses pass through to the individual tax return 1040. No tax brackets other than the personal tax brackets apply.
Maintains limited liability protection, just like a "C" corporation.
Restricted to 75 stockholders or less.
Stockholders must be US residents.
Stockholders and directors must be individuals, not business entities.
Runs on a calendar year.
"S" corporation profits and losses may be allocated only in proportion to each shareholder's ownership of the business
Before You Incorporate...
Why incorporate?
To safeguard your personal assets against creditors and lawsuits. Without a corporation or LLC, anyone suing your business is really just suing you personally, putting everything you own (house, cars, bank accounts) at risk of being seized in a judgment. Sole proprietors and general partners in a partnership are personally responsible for all the liabilities of the business, such as loans, accounts payable, and potential lawsuits. In a Delaware corporation, however, stockholders, directors and officers typically are not liable for the company's debts and obligations. You can also use a Delaware corporation or LLC to hold your personal assets like a house, car or boat. If you are ever personally involved in a lawsuit or bankruptcy, these assets cannot be seized.
Ownership in a Delaware corporation or LLC is private and easily transferable to others. Even the state of Delaware does not record your name. In addition, the transfer of ownership is not required to be filed or recorded anywhere.
Your corporation can fully deduct the cost of paying for your health insurance and other fringe benefits.
Corporations are taxed at a lower rate than individuals. Also, they can own shares in another corporation and receive corporate dividends 80% tax-free.
There are no limits on the amount of losses a corporation may carry forward to subsequent tax years. A sole proprietorship, on the other hand, cannot claim a capital loss greater than $3,000 unless the owner has offsetting capital gains.
Leasing your personally owned property (real estate, automobile, or even a domain name) to a corporation may provide tax savings to many individuals.
Capital from investors can be raised easily through the sale of stock.
A Delaware corporation or LLC is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the corporation.
Regardless of your personal credit score, you can build a separate credit history for your Delaware corporation or LLC simply by applying for and using corporate credit.
Why is Delaware such a popular state for incorporating? There is no requirement to form your company in the state or country where you live or where your business or property is actually located, so most savvy business people choose the state with the most favorable corporate and tax laws. The following are a few of the reasons Delaware is famous as a corporate haven and the legal home to over half of the Fortune 500 :
You can form your Delaware company online without ever coming to Delaware by using the services of a Delaware registered agent, such as The Delaware Company™ .
Your Delaware corporation or LLC may be based, headquartered or operated anywhere in the world.
One person may be the sole stockholder and director and also hold all of the executive offices of a Delaware corporation including Chairman of the Board, President, Vice President, Treasurer and Secretary.
You can incorporate and operate your Delaware company with personal privacy.
You need not maintain a Delaware business office address aside from the address of your Delaware registered agent, which can be The Delaware Company™ .
There is no state corporate income tax for Delaware companies that do not operate within the state.
There is no sales tax in Delaware. Whether your corporation is physically located in Delaware or not, purchases in Delaware are not subject to sales tax.
There are no Delaware capital shares or stock transfer taxes.
There is no state inheritance tax on stock held by non-residents of Delaware .
A Delaware director shield law protects you from personal liability in connection with the actions of your company.
There is a long-established body of laws that protects Delaware companies and lets them focus on doing business, rather than fighting expensive lawsuits.
Delaware has a separate court system, the Court of Chancery, to help resolve business disputes fairly and inexpensively. This special business court exists only in Delaware.
Different kinds of businesses can be transacted under one corporate roof. Your company can own real estate or personal property anywhere in the world.
You do not have to be a US citizen to form a regular "C" corporation or Limited Liability Company (LLC). Resident non-citizens may form "S" corporations.
Company records need not be kept in Delaware.
Unlike some states, there is no minimum investment to form your Delaware company
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