How do I set up a personal corporation?

To establish a personal corporation, you must:

1. Choose a state of incorporation.
2. Decide on a corporate name.
3. Draft your articles of incorporation.
4. Obtain an employee identification number (EIN) from the IRS.

What is needed to form a corporation?

The major requirement to forming a corporation is filing the Articles of Incorporation, which is a legal document that provides proof that your company exists and is authorized to operate in the state. A proper Articles of Incorporation document will include the following information: The corporation’s name.

What are the three stages in forming a corporation?

For convenience the whole process of company formation may be divided into the following four stages: 1. Promotion Stage 2. Incorporation or Registration Stage 3. Capital Subscription Stage 4.

Should I set myself up as a corporation?

Setting up as a corporation is considered one of the most ideal ways to protect personal assets. The corporation becomes a separate entity and holds responsibility for the debts it incurs. Corporations have the ability to own property, engage in business activities, and can both sue and be sued.

What is the first step in forming a corporation?

How to Form a Corporation

1. Choose a Business Name.
2. Check Availability of Name.
3. Register a DBA Name.
4. Appoint Directors.
5. File Your Articles of Incorporation.
6. Write Your Corporate Bylaws.
7. Draft a Shareholders’ Agreement.
8. Hold Initial Board of Directors Meeting.

Is a professional corporation a personal service corporation?

The terms professional corporation (PC) and personal service corporation (PSC) are often confused. Both are corporations and both are owned by professionals such as attorneys, CPAs, architects, doctors, and others. A PC is a corporation composed of specific types of professionals, set up according to state law.

How can a person form a personal corporation?

Anybody can form a corporation in a few simple steps by simply filing the required paperwork and filing fees. Most personal corporations are structured as Subchapter S corporations because they allow all income to “pass through” to share holders and don’t receive double taxation as C corporations.

What are the steps to starting a corporation?

The seven basic steps to incorporation are as follows: Choose a corporate name and address: Perform a corporate name search to ensure the name is unique so you don’t have trademark problems in the future. Select a state to incorporate in: You don’t have to incorporate in your home state.

Are there any benefits to forming a corporation?

Often, business owners think that incorporation is too costly or too time-consuming, and neither is the case. The benefits entrepreneurs gain by forming their business as a corporation typically outweigh any perceived disadvantages.

Can a business be a personal service corporation?

The Internal Revenue Service (IRS) offers a variety of tax options that business owners can choose based on their business types and circumstances. One of the most preferred tax statuses is the corporation. Business owners can also choose a personal service corporation if they meet the requirements. What Is a Personal Service Corporation?

How to start a business or form a corporation?

To obtain state-specific information on how to start a business or form a corporation, check out the list of links to state business offices maintained at the Small Business Administration website. 1. Choose a business name. Choosing a business name for your corporation is an important first step when you start a corporation.

What do you need to know about a personal corporation?

To establish a personal corporation, you must: Choose a state of incorporation. While many business owners choose their home state for incorporation, many incorporate their businesses in corporate havens such as Delaware, Nevada, and South Dakota. Decide on a corporate name.

The Internal Revenue Service (IRS) offers a variety of tax options that business owners can choose based on their business types and circumstances. One of the most preferred tax statuses is the corporation. Business owners can also choose a personal service corporation if they meet the requirements. What Is a Personal Service Corporation?

What happens in the formation of a corporation?

A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. Find out what takes place in the formation of a corporation and the resulting tax responsibilities and required forms. Forming a Corporation | Internal Revenue Service Skip to main content