What Is A Corporation And What Are The Benefits?
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 the 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 a 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 the 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 the 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) 220-0150 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.)
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!
Adair drew up a beautiful power of attorney and Will for my father in a timely manner. I highly recommend that you use her. She’s a wonderful lady.
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.
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.
This was as painless as it gets to hire an attorney in Amarillo Texas. Handled all the estate needs and never had to appear in court. You won't find any better and I use Attorneys quite often in my line of work.
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.
I was meeting with a financial advisor who encouraged me to finish my Will. He offices next door to an Estate Attorney, and voila, 'one-stop shopping]! Adair and her assistant Pennye made completing my estate planning fun, easy, and pleasant. I wholeheartedly recommend Adair Buckner!!
Adair is very professional. She cares about her clients and explains everything very well. She makes you feel like a friend.
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!
Mrs. Buckner did a full estate plan for me. Her work was excellent, her communication was great, and the price was reasonable. I would highly recommend her for your estate planning needs.