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Frequent Questions

What is incorporation?

Quite simply, incorporation is the process of defining your business, both legally and strategically. You would not build a house without an idea and a written record.

By choosing an LLC, s corporation (s corp), or c corporation (c corp), you've got the liberty to decide on a tax structure that works for your business.

Why should you incorporate?
  • Protection of personal asset
  • Enhanced credibility
  • Tax flexibility and incorporation tax benefits
  • Protection of brand
  • Perpetual existence
  • Reduce expenses
Are there any additional charges after the order?

You paid the entire price for your order at the time you placed it.
However, if you signed up for the Corporate Loft Registered Agent Service, you'll be charged for this service when the state grants your company a Certificate of Formation. This is often an annual fee which will be automatically charged to your account annually unless you modify your Registered Agent with the State or dissolve your company

Is there a required number of people needed to make an LLC?

There is no minimum requirement on the number of householders (also mentioned as members) that an LLC must-have. At the federal level, single-member LLCs qualify for pass-through taxation, however, this is often not always true at the state level.

What Is a Corporate or Company Seal?

A corporate seal (also known as a company seal) is a special stamp customized to your company. It can be used to emboss particular documents with details about your company. Although company seals are not typically required in most jurisdictions, they can add a level of formality to important company documents

What Information Is Included on a Corporate Seal?
A corporate seal can be used to mark documents as “official.” Company seals can be used on documents like share certificates, meeting minutes, various contracts, deeds, and similar items. A corporate seal is typically recognized by the board of directors as a way to authorize documents on behalf of a corporation.
How an S Corporation Saves You Money

S Corporations reduce your taxes by lessening the amount of payroll or self-employment tax you pay. Money that you take out as a distribution is not subject to the 15.3 percent payroll or self-employment tax, whereas your regular salary payments are

Taxes You Pay on S Corporation Salary and Payroll Earnings:
S Corporations must have a payroll and salaried employees. Even if you’re running the business by yourself or with a spouse, you will still need to run payroll. You will pay several types of tax on any payroll amounts that you pay to employees or business owners:

Employer payroll tax of 7.65 percent on payroll amounts earned
Employee payroll tax of 7.65 percent on payroll amounts earned
Federal income tax on payroll amounts earned after a standard deduction
State income tax on payroll amounts earned after a state deduction
Unemployment taxes payable to the IRS (FUTA) and your state (SUTA)

When will my order be processed?

You paid the whole price for your order at the time you placed it. However, if you signed up for the company Loft Registered Agent Service, you will be charged for this service when the state grants your company a Certificate of Formation. This is often an annual fee which can be automatically charged to your account annually unless you modify your Registered Agent with the State or dissolve your company

How do I open a bank account?

Opening a business checking account is often a simple process once you have all the required documentation on-site. For both an LLC and an organization you'll need the following:

  • Federal Tax number
  • Articles of Organization or Certificate of Formation
  • Banking Resolution
How do I determine if it’s best to make my business as an LLC?

Despite being a comparatively new option, the indebtedness company (LLC) is now one of the foremost popular business structures among smaller organizations.

While allowing business owners to stay free from an excellent deal of the regulations imposed on other sorts of companies, it still provides indebtedness protection for its owners (members). This suggests that the private assets of an LLC's owners can't be collected to satisfy the debts of the business.

What is involved in forming an LLC?
All states require potential LLC owners to file a considerable set of documents, typically called the Articles of Organization, to determine their business. We will look out of this process for you, saving you time, effort, and allowing you to specialize in developing your business – not filing paperwork.
S Corporation Distribution Rules

When you pay out distributions, you must pay them to owners/corporate officers based on their ownership in the business. This ownership could be set by the operating agreement, or by the issuance or purchase of shares in the business.

For example, if you pay out $50,000 in distributions and person A owns 50 percent of the S Corporation, person B owns 30 percent and person C owns 20 percent:

  • Person A would receive $25,000 in distributions.
  • Person B would receive $15,000 in distributions.
  • Person C would receive $10,000 in distributions.
Nonprofits Are Separate Legal Entities, Not-for-Profits Are Not

Typically, a nonprofit is a “separate entity” for tax, governance and management purposes, in a similar way to an LLC or corporation. Technically, a not-for-profit isn’t generally a separate legal entity, and doesn’t have a separate legal existence to its members. Not-for-profits are less common than nonprofits.

Nonprofits Have a Charter, Not-for-Profits Do Not

A nonprofit normally has a national or state charter. This charter often provides people involved with the nonprofit with legal and financial protections. Nonprofits have a board that oversees and directs the organization. Not-for-profits typically do not have a charter and are not normally required to have a board.

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