Setting up a corporation requires an experienced business law attorney. The properly formed corporation must operate as a corporation at all times to qualify for the legal protections offered by the corporate status.
In simple terms, a corporation is an entity that benefits from legal protection similar to a private individual. However, only an experienced business law attorney can advise on the differences, advantages and disadvantages of the types of corporations: a C corporation, S corporation or an LLC.
With incorporation, a business or a religious, civil, nonprofit or charitable organization can acquire protection of personal assets and certain tax benefits and establishment of retirement funds and plans (such as a 401K). The formation of a corporation protects its assets against the claims of creditors and lawsuits. The stockholders, directors and officers are not liable for the company’s obligations and debt. If financing originates from outside investors, stock certificates need to be prepared, registered and issued and rules for shareholder’s stock holdings established.
More importantly, consult a business law attorney with strong estate planning background. From the beginning, a corporation should have a plan for changes in ownership with a Shareholder’s Agreement. The agreement plans for the time when an individual leaves the corporation to pursue other interests, retires, dies or becomes disabled.
Ms. Scoles prepares the Articles of Incorporation that must be filed with the state of California and counsels the members in the formation of their by-laws; the operating rules for the company. Advice on licenses, permits, employer ID # from the IRS, a seller’s permit and a zoning permit if applicable is also provided.