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Frequently Asked
Questions:
General Company Formation Questions
Other Questions
Questions about our Service/Company
General Company Formation Questions
How do I
form an entity?
To
begin, decide what type of entity you want
to form, a DBA, S-Corp, C-Corp, or LLC, and
then pick the host state where you will file
the company name. Once you make that decision,
we will help you meet the specific requirements
for that state.
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How do I know
which type of entity is best for me?
Consult with an attorney or accountant. They
look at your individual situation and goals
and help you to decide the entity that fits
those needs. Once you choose the right entity,
we will provide you with the proper paperwork
for your state’s requirements.
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What is the difference
between a Corporation and LLC?
They both provide liability protection; however,
they differ in benefits, operation and formalities.
Most of these differences are related to federal
tax liabilities. A corporation is also allowed
to sell stock, which a LLC cannot do. However,
if you form an LLC now and want to change it
over to a C Corporation or S Corporation in
the future, we can do that for you.
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Choosing a company
name.
The name must be unique and not resemble another
registered entity. Some states require an identifier
in the name, such as Incorporated, Corporation,
Company, or Limited. When you complete our
client questionnaire, we ask that you submit
3 names in the order of your preference. If
your first name choice is unavailable, then
the next name on the list will be submitted,
and so on.
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What is the amount
of startup capital required to form an entity?
The filing fees are the only capital required
by the state to form your business entity.
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How long will
it be before the formation of my entity is complete?
This depends on the state offices and their
ability to process the forms. On our end,
the turnaround time is roughly 3 days. Unfortunately
on their end, the time can fluctuate a lot.
It is best to call and ask your state offices.
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Other Questions
How
do I know which state is best for my entity?
Most business
entities are formed in the state where the company is expected to conduct most
of its business. However, an attorney or accountant may help you look at the
differences in the states and help you make that choice. Usually, an initial
legal consult is free.
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Why is Delaware
such a popular destination for company formation?
Amongst many others, Delaware offers the following
advantages:
-
Delaware has far less taxes and lower fees
than most other states.
-
Filing and processing is quick, cheap, and
easy.
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Delaware's regulations allow greater anonymity.
-
One person can hold all the offices of the
corporation.
-
The state has a Business Court that handles
legal disputes well.
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If I form my
company in Delaware, can I do business in other
states?
You can do business anywhere, even internationally,
as long as your activities abide by the laws
of each place.
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What is a Registered
Agent?
This person resides in the company’s
home state (where the business entity is registered)
and has an address there. The agent is the
main contact person for the company’s
dealings with state tax and legal matters.
The Registered Agent may be the company’s
owner or a person assigned to handle that job.
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Do I need a new
bank account and/or tax ID?
Yes, it is essential that you separate your
personal and other business’s information
from your new entity. If you don’t separate
them, you risk compromising the liability protection
provided by your entity.
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How many people
are needed to incorporate? (Corp.)
There should be at least one director for
a corporation and two for an LLC, however,
this requirement may vary among the states.
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What are the
"Articles of Incorporation"?
This is a summary or definition of your company
and your business practices.
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What is the difference
between members and managers. (LLC)
Members are the founders of the company and
managers are the people hired to operate the
company.
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Questions about our Service/Company
What is the expected
turnaround time on the forms?
From the time we receive the payment and completed
questionnaire, it takes 2-3 business days (sometimes
even less) for us to process the forms and send
them back to you.
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Will you be filing
the forms for me?
We provide you with everything you need to
file the forms yourself. All you have to do
is mail them. This keeps your cost to a minimum.
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Does your service
include the state filing fee?
No.
You pay that fee when you file the forms.
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How does it work?
We use the information from your questionnaire
to prepare the proper forms and provide you
with specific instructions for filing them
in your state.
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How does the
Money Back Guarantee work?
We proudly offer the simplest and most reliable
money back guarantee in the industry. If you
experience trouble filing your forms due to
paperwork problems caused by us and we fail
to make the necessary corrections/adjustments,
you will get your money back.
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About our Client
Support System:
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This is the second most
visited page on our entire site and
we are very proud of our client support
system. However, there is always room
for improvement. So don't hesitate to
ask questions or contact us to talk
about your ideas/concerns/comments. If
you can contribute in any way, we urge
you to do so. Thank You. |
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Disclaimer:
Please note that the information on this page
and any other pages on this domain is provided
under the agreement that you understand we are
not a law firm. Therefore, we do not give legal
or financial advice as it would be unlawful
for us to do so. The information you receive
on our site or through our customer support
is common knowledge in the field of form preparation
for company formation. We will gladly share
this information with you as you can see on
this page as long as you consent to the said
agreement.
Bottom Line: If you need legal advice, consult
an authorized legal professional. We can not
tell you "what's best for you or what you
should do". But once you have that figured
out, we can tell you how to do it and provide
you with the services and support necessary.
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