We create the following types of corporations:
*Traditional (C) Corporations
*Non Profit Corporations
*Sub Chapter S-Corporations
*Limited Liability Corporations
*We form corporations in all 50 states
The benefits to having a corporation are as follows:
1. Corporations are prestigious because they tell customers, banks and other business that you are a legitimate business. Most big businesses are almost always corporations.
2. It registers your business and gives you the legal right to do business in the state of New York or in any other state you want to do business.
3. It limits your liabilities on contracts. For example if you sign a lease for a store or an office you want to sign the lease for as long as you can so that if you business is sucessfull you landlord can't raise your rent and take all your profits. However if you sign the lease in your personal name, as opposd to a corporate name, you are personally liable and can be forced to pay the rent even if you move or close your business. If you sign the lease in the name of the corporation, the landlord would only be able to go after the corporation and not you personally. Many a business owner have been driven into bankruptcy by signing contracts in their own name. You can lose eveything you have and they can even take money out of your future wages if you are not a corporation.
4. Owning a corporation enables you to get other individuals or corporations to buy stock in your company. You can even get venture capitalists to finance your business with a corporation.
5. A corporation is a separate legal entity and as such it has its own credit history, bank accounts and assets that are apart from yours. Therefore, if you have bad credit, you can develop credit in the corporate name, and use the corporation to finance your needs.
6. If you have any leins or judgments against you, the money in your bank account can be seized to pay the person or business to whom you owe money. If you put the money in a corporate bank account, it is very difficult for them to take your money because the corporation is a separate entity from you.
7. If someone is garnishing your salary, once again, the corporation can be used as a defense. Because if the company you are preforming services for pays your company instead of you personally, it is more difficult to take your money.
NOTE: This page is intended for general discusion purposes and is not intended to be legal advise in your particular situation
