Business Incorporation Filing Online
Completing a business incorporation filing online is now more popular than ever, thanks to our easy to use, online service. Business incoporation is one of the best ways to protect your personal assets from business related liabilities. For many people, this is the reason they begin to look at forming a corporation. However, with a closer look, you can easily see that corporations offer other great benefits such as increased credibility and tax savings. They can also allow you to deduct business expenses and are more attractive to investors. In short, business incorporation filings make sense!
Whatever your reasons for selecting a corporate structure, you’ve made a great choice in coming to EZonlineFiling.com to handle the online business incorporation process.
We are experts at business incorporation filing and we make it our mission to handle all of the difficult steps required by the Secretary of State for a new business filing so you don't have to.
Incorporating your business online is as simple as this: Just answer a few simple questions on our secure and confidential incorporation filing questionnaire. This can take as little as ten minutes. One of our experts will review the information and prepare Articles of Incorporation needed by the Secretary of State. We will also keep you informed, step by step, throughout the process so you will never have to wonder about the status of your business filing.
When your incorporation filing is finalized, you will receive your documents so you can have assurance the company was established to your satisfaction.
What could be easier?
Here’s how it works:
- Complete the business incorporation filing questionnaire:
Answer some simple questions about your business filing. This only takes about 10 minutes and since our questions are all on one page, you won't be guessing whether you’ve done everything that’s needed for your incorporation filing.
- We handle your business filing with the state:
Once Step 1 is completed, we create the Articles of Incorporation that the state needs for a succesful business filing. We give them a quality check to make certain your answers are accurately reflected and then process the actual incorporation filing with the state.
- Final steps:
When your documents back from the state, we forward them to you along with any other papers or directions related to the business filing.
Truly as easy as 1, 2, 3! All of the confusing processes that happen in-between these three steps are handled by us. That’s the real magic of what we do!
Q: How many types of business filings are available to choose from?
A: For an incorporation filing, there are four basic types of business entities: C-Corporation, S-Corporation, Professional Corporation, or Non-Profit Corporation. Additionally, there are Limited Liability Companies (LLC) and DBA’s (Doing business as). You can read more about these entity types in our Learning Center under Help Me Decide, where it goes into the details about the pros and cons of different business filings.
Q: What is a C-Corporation?
A: There is really one major distinction that sets a corporation apart from other business entities. A corporation is truly separate from the people who own and manage it. As a result, the corporation must pay it’s own taxes…they are not paid by the owners or managers. Owners, for example, only pay taxes on money that the corporation pays them in the form of salaries and bonuses, just like in any other job.
Q: What is an S-Corporation?
A: An S-Corporation is a regular corporate structure, which has selected an S-Corporation tax status. When this is done, the owner still gets the liability protections of a corporation; however, all of the tax responsibilities pass directly through to the owner as if he or she were a sole proprietor. All profits or losses would appear on the owner’s personal tax returns. NOTE: Any corporation can elect S-Corporation status after it has been formed. The process requires submitting specially prepared tax forms to the IRS and may require a state level filing as well.
Q: What is a Professional Corporation?
A: This business filing is for businesses the states consider to be involved in “Professional Services”. Examples of “Professional Services” include the following:
- Medical Services
- Architectural Services
- Accounting and Financial Services
- Legal Services
Some states might designate other professions as “Professional Services”, and it may be important for you to seek the advice of an attorney if you feel that your business might fall under these statutes. Once you determine that a Professional Corporation is right for you, we can prepare the special your Articles of Incorporation as required by the state.
Q: What is a Non-Profit Corporation?
A: Corporations which select Non-Profit status generally are formed for a non-commercial purpose, such as the support of a charity, religion, research, or even politics and education. Such an organization is governed under special rules that affect a number of issues such as taxes and what happens to the group’s assets upon dissolution of the company. Because of their specialized status, we recommend seeking competent counsel for both legal and accounting purposes before finalizing your decision on Non-Profit status. As always, once this selection is determined, we can handle everything else.
Q: How will incorporating my business benefit me?
A: No matter what size your business is or how large you intend to grow, there are clear advantages to forming a Corporation or an LLC. Four of the most common reasons for formalizing your business are:
- Potential tax benefits
- Increased credibility for your company
- Personal asset protection
- The business can continue to operate even if an owner or partner leaves.
Q: What is the main difference between an LLC and an S-Corporation?
A: An LLC has more flexibility and fewer restrictions than an S corporation. An S corporation cannot have more than 100 stockholders, cannot issue more than one class of shares, and is subject to more formalities than an LLC. However, owners of an LLC are required to pay Social Security and Medicare taxes on profits. Corporate stockholders are not required to pay these taxes on profits over and above the stockholders’ salaries.
Q: What is the main difference between a C-Corporation and an S-Corporation?
A: C corporations are subject to double taxation. This means there is one tax at the corporate level on the corporation's net income, and another tax to the shareholders when the profits are distributed. S corporations have only one level of taxation. All of their income is allocated to the stockholders.
However, C corporations have greater tax planning flexibility and can shield stockholders from direct tax liability. In addition, S corporations are subject to limitations, such as the number and type of stockholders they can have.
Q: What do I get back once I have formed my corporation?
A: Once your filing is finalized, you will receive your Articles of Incorporation, as well as paperwork related to your by-laws and organizational minutes. Depending on your individual filing, there may be other documents returned to you, such as an EIN or DBA related items.
Q: What is involved in selecting a Corporate Officer?
A: When we begin your filing, we will allow you to select as many as four officers for your corporation. There are, however, only three positions, which are considered mandatory:
Most states will allow one person to serve in all three positions. In such a case, the person’s responsibilities and authority will be different in each position.
- This position has responsibility for the overall management of the company and carries out the orders of the board of directors.
- This is the chief financial officer and he or she will manage the bank accounts and finances of the business.
- This position is responsible for maintaining all corporate records for the company.
Q: How long does incorporating a business online take?
A: You are done with your part in as little as ten minutes. However, the full answer to this question is very dependent on the state in which you are forming your company. With EZonlinefilings.com, we begin to process your formation paperwork the same day you speak with us and we can even rush your order, to make things go faster. We may be able to have a completed formation back to you in just a few days, but if your Secretary of State is behind, it can take much longer. The timing is most dependent on the state, since we move so quickly. Tell us about any time constraints you have and let us help you find an answer.
Q: I often hear people talk about “piercing the corporate veil”. What is this?
A: This is the legal term used to describe an action to have the corporation set aside for purposes of the litigation, such that personal liability attaches, and personal assets can be reached. One of the biggest advantages to incorporating a business online is that the principals of a corporation or LLC enjoy broad protection from being held personally responsible for the debts and liabilities of the corporation. That is, creditors can reach the corporation's assets, but once those assets are exhausted they cannot ordinarily also reach the personal assets of the owners or shareholders of the corporation. Those to whom a business corporation is liable may try to “pierce the corporate veil”. For this reason, it is vital that the owners and members make every attempt to follow all corporate formalities required by the state and never use a corporation for personal use.
Q: What does it mean for a corporation to fall into “bad standing”?
A: This terminology is used to describe a corporation that has not properly maintained its obligations with the state where it conducts business. Corporations that are in bad standing long enough risk being administratively dissolved or revoked by the state. This should be avoided because when a state administratively dissolves a corporation or its corporate status is revoked, the benefits that come from being a corporation are lost.
Q: What is “pass-through” taxation and does it apply to a corporation?
A: "Pass-through" taxation means that the business entity, itself, is not directly taxed, and the tax burden is passed on to the owners of the corporation. The company passes its profits and/or losses to the owners as income, wages and profit payments, and each owner pays the taxes on their individual share of those profits. This can apply to corporations in the form of an S Corporation.
Q. What is a corporate conversion?
A. A corporate conversion is a filing that is made with the state allowing an entity to change from its originally filed entity type to a different entity type. As an example, if a company was originally formed as a limited liability company (LLC) and the owner wishes to change the structure to a corporation, they may wish to file a conversion as opposed to starting over as a completely new entity.
Q. Is it possible to convert from one entity type to another?
A. Yes, it is possible to change from one entity type to another; however, the process is different from state to state, depending on the conversion taking place, such as limited liability company (LLC) to corporation or corporation to LLC. In the most difficult instances, business owners must create a new company; transfer company assets from the old company to the new one; and dissolve the old company. However, some states have implemented more streamlined processes for conversion.
We can identify the necessary process for your company, based on the state of formation and the intended conversion. Please contact our customer service team for information specific to your situation.
Q. Can I convert my sole proprietorship or partnership to a limited liability company (LLC) or corporation?
A.Yes, although its not considered a conversion. In these instances, you need to form an LLC or form a corporation and transfer the assets of your old company into the newly-formed business entity.
Q. Can I convert my C corporation to an S corporation?
A. Yes, although its not considered a conversion. An S corporation, or subchapter S corporation, is a standard corporation (C corporation) that has elected special tax status with the Internal Revenue Service (IRS). In order to elect S corporation status, a timely filing of Form 2553 must be made with the IRS. View the frequently asked questions on S Corporations for more information on S corporation requirements.
Q. Can I convert my S corporation to an C corporation?
A. Yes, although its not considered a conversion. Business owners must change their elected tax status with the Internal Revenue Service (IRS).
Q. Does converting a company have tax implications?
A. Yes, a change in entity status may entail immediate or future tax costs. For example, if you liquidate a corporation in order to form a limited liability company (LLC), there may be tax to both the corporation and its shareholders. If, however, the corporation has losses, there may be no tax upon liquidation. It is best to seek the assistance of an accountant or tax advisor for advice on your particular situation.