A “corporate kit” generally consists of a notebook for keeping corporate minutes and records, a supply of blank stock certificates, and a corporate seal. Many office supply stores and rubber stamp companies sell corporate kits as a convenient way to…
The main advantage of using different corporations or entities is liability protection. If different businesses are set up in different corporations and one of the businesses has legal troubles, it should not affect the others because each is considered a…
A corporation can do business in states other than the one it is registered in. However, most states have laws that say that if a corporation has substantial business contacts with the state itwants to do business in, it must…
Preemptive rights give an existing shareholder of a corporation the right to purchase a proportionate part of any new share issuance before the shares are offered to non-shareholders. The purpose is to prevent the dilution of your ownership percentage and…
The information requested by a bank to set up an account for a new corporation is generally not a matter of state law but rather the requirement of the individual bank. The best practice is to call the bank you…
A new or separate bank account is generally required when you form a new entity. This is true because the new entity is considered a legal entity separate and apart from the individuals who operate it. This legal separation of…
You can now obtain an employer identification number (EIN) online at the IRS website. You will see a copy of form SS-4, the application form for a new EIN. You can fill out and submit the form online. You should…
Each new entity, such as a corporation or limited liability company (LLC), is required to have a new employer identification number (EIN) for federal tax purposes (this is not the same as astate tax number). This is true because the…
You may want to act as your registered agent if you have an office with a street address in the state where you are incorporated. This will save you some money. However, if you need a different registered agent, most…
Every state requires a registered agent for any corporation, LLC, or other entity. A registered agent is a person or entity that has a street address (cannot be a post office box) in the state of filing who can accept…