Jan

4

2018

What Is A Corporation And What Are The Benefits?

Posted by: Adair M. Buckner

What Is A Corporation?

A corporation is a separate legal entity from its owners. A corporation can be owned by one person or many people. The corporation is formed under the laws of the state in which it is operating, with Articles of Incorporation or Certificate of Formation.

What Are The Benefits Of A Corporation?

  • Your personal assets are protected.
    • The corporation shields your personal assets from the satisfaction of debts or liabilities of the business. But, you do have to follow corporate formalities to maintain this protection.
  • You may be able to achieve tax advantages.
    • The corporation allows ample opportunities to shield income through shifting of income and expenses.
    • You eliminate self-employment tax by using the corporation to conduct business.


What Are The Disadvantages Of A Corporation?

  • Starting business is more expensive and complicated.
    • Incorporation requires filing with the Secretary of State, for which you pay a filing fee. Unless you decide to try incorporating on your own, you will incur attorneys fees for helping you incorporate.
    • You must have an organizational meeting with recorded minutes. Plus, you are required to take care of other legal formalities.
  • Legal formalities must be followed during all phases of conducting business.
    • Annual meetings must be conducted with recorded minutes.
    • Documents must be executed with the correct corporate designations to maintain protection of personal assets.
    • Changes in stock ownership must be documented correctly.
  • Ceasing business is more complicated and expensive.
    • You must conduct appropriate meetings with recorded minutes to authorize dissolution of the corporation.
    • You must follow dissolution procedures and file documents with the Secretary of State and pay filing fees.
  • Filing tax returns is more complicated and expensive.
    • A separate tax return is required for a corporation, so you will have the expense of both corporate and personal tax returns.
    • If your accounting is not handled wisely, you could end up paying more in taxes than if you had not incorporated.

If you are looking to incorporate, and you need help deciding if a corporation is right for you or how to do it, please call Adair M. Buckner at (806) 853-6181 to set up a free initial consultation*.

*(The free consultation does not cover actual review of documents or giving legal advice on a specific situation.)

TESTIMONIALS

It was way past time to finally get our Wills completed. This was something that was extremely complicated for us, but Adair and her assistant never made us feel like we were bothering them...and we (I) bothered them...a lot! Things were explained to us in a way that we could understand easily. Extremely professional and knows her stuff!

- Darla -

Trying to get our LLC changed over after moving to Texas was complicated, but Adair Buckner made the process so simple! We just gave her the details, and she handled everything quickly and professionally. Thank you, Adair, for making this part of our move stress-free!

- Barbara -

We appreciate Adair Buckner’s professional and personable service. Our legal needs were met promptly and succinctly. We would not hesitate (and do!) recommend her to our family and friends.

- Kristine -

Adair was very helpful in guiding us through this process of creating our estate planning! She and her assistant were friendly to us each time we met them in their office. I would highly recommend Adair Buckner as an attorney of choice!

- Bruce -

I needed an attorney I could trust who could handle my legal concerns regarding my mother’s Living Trust. Adair Buckner firmly set things right. She was my voice when I had none and knew how to protect me in the midst of negative chaos. I recommend Adair to anyone seeking justice.

- Debbie -

It is a great pleasure working with Adair. She is very professional and genuinely concerned about your needs. I have complete faith and trust in Adair and will always work with here for my attorney needs.

- Danny -

Adair is our employment attorney at ROI Online. She is an excellent resource to turn to as we grow and add employees. Adair is not only extremely knowledgeable in her area of employment expertise, but she is also very accessible and quickly responds to our questions and requests.

- Steve -

When my husband passed away, I contacted the attorney that we had used to prepare our wills but was unhappy with his attitude of indifference. I discovered Adair Buckner and all of my issues were resolved. Adair is professional, compassionate, and extremely knowledgeable. She saved me a large amount of money by processing my will in the appropriate manner to best suit my situation.

- Susan -