Tcc How to Incorporate Guide2

8/8/2019 Tcc How to Incorporate Guide2

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Incorporating what's right for you.

How to Incorporate or Form an LLC in 10 Easy StepsLet us help you put the pieces together.

SM


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Congratulations! By requesting this guide from The Company Corporation, youve taken

your first step toward protecting your personal assets and building business credibility.

When we refer to incorporating, we mean the act of creating a new corporation underthe laws of a particular state. Some people also use the term incorporating to refer tothe formation of a Limited Liability Company (LLC).

This guide will help you understand the benefits of incorporating, the differences betweencorporations and LLCs, and the process for forming your own business.

We promise to make that process as smooth as possible. Weve helped hundreds ofthousands of business owners just like you incorporate or form an LLC.

You can start with the New LLC and Corporation Order Form located in the back of thisguide. Fill it out as you read through each step. Simply fax it to us when complete, orcontact us for help. You can also request your business formation online atwww.incorporate.com or speak with a Business Specialist over the phone for morepersonalized service.

Lets get started.

Sincerely,

Brett DavisGENERAL MANAGER

P.S. If you have any questions or want to speed up the process, call one of our BusinessSpecialists at 800-209-0128 or visit www.incorporate.com.

The Company Corporation is a service company. It does not provide legal advice, and its services are not a substitute for

advice from a licensed attorney.

Dear Business Owner:


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Protect personal assets.

Realize tax advantages.

Give your business more credibility.These are just some of the benefits youll get after you incorporate or form an LLC

with The Company Corporation.

To decide if this is the right move for you, answer these questions:

NoYes

1. Do you want to protect your personal assets (your home, car, savings, etc.)from lawsuits against your business??

2. Does or will your business:

a. Sell goods or services to the public and/or other businesses?

b. Bring customers into your office or store?

c. Have employees?

d. Take on debt?

3. Are you entering into a business with family members or friends?

4. Do you, or will you, have investors or partners?

5. Would you like the option to raise capital through the sale of stock?

If you answered Yes to any of these questions, youre ready to complete the enclosedNew LLC/Corporation Order Form.


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Step 1: Choose a Business Name

Have your Order Form? Have a pen? Have a company name? If so, great. Write your business name onthe form. Since the name you want might not be available, please provide an alternate.

Meet John ... After a few successful investments on the side, I started my ownreal estate investment company. Forming an LLC helped me keepmy familys home and personal assets separate from my investment

properties.

In this example, John is the owner of FunHouse Real Estate, LLC.He chose this name because his investment properties are vacationproperties ... houses to have fun in.

Meet Jane ... I had big plans when I started and needed a way to raise capital, so Iformed a corporation. Surprisingly, people took me more seriously whenthey saw INC. at the end of the name.

Jane, as another example, was one of the first computer experts toset up her own mobile PC repair business. Started in 1992, she nowhas a crew of six techs and two administrative staff. She chose thebusiness name, IT@home, Inc., because her staff has the ability to visitcustomers houses and diagnose and repair their computers on-site.

Your name is your first connection to your customers.Its also the first step toward making your dream a reality.

Many businesses select a name that identifies the type of service and products offered or highlights aunique benefit or attribute of their business. For example, a business owner who sells spicy hot dogs

might want to name the business Red Hot Dogs or Firedogs. Two more examples of developingnames for companies come from John and Jane who represent small business owners on the path tosuccess.

How to select a name.


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Lots of businesses start small, but end up big. Many also start in one state, but dont always stay there.So lets figure out which state might be best for you.

Most business owners choose to incorporate or form an LLC in the state in which they plan to conduct

business. Typically, filing in your home state is the least complicated, especially if you plan to operateyour business exclusively in your home state. Also, filing in your home state helps you avoid payingfranchise taxes and filing annual reports in multiple states, and, generally, it costs less to incorporate orform an LLC locally.

Many companies conduct business throughout the U.S. and abroad. A business that has locationsin multiple states may form a corporation or LLC in a single state and then qualify to do businessin other states. This means companies must formally register, file annual reports, and pay annualfees to obtain authority to conduct business in those states and benefit from the laws of the state.The Company Corporation can assist you in qualifying your corporation or LLC and keeping track of

corporate filing requirements in any state you choose.

If you are located outside the United States, please call one of our Business Specialists in the U.S. at302-636-5430 to form an LLC or incorporate in just 10 minutes.

Owning a business is more than a state of mind...Thats why you have to decide which state to register in.

Step 2: Select the State Where You Want to Incorporate orStep 2: Select the State Where You Want to Incorporate orForm Your LLCForm Your LLC

John ...Living in Virginia near the North Carolina border, and with

properties in both states, it made the most sense for me to form my

LLC in Virginia and qualify to do business in North Carolina.

Jane ...Theres plenty of business for me in my city alone, so I just formedmy corporation in my home state. If the business grows, Ill get TheCompany Corporation to help me qualify in other states, too.

Are you located outside the United States?

Conducting business in multiple states?

Conducting business in your home state?


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Just what should your company be...A corporation or an LLC?

Step 3: Decide What Type of Company to Form, an LLC or Corporation

There is no one right answer to the question, Should I form a corporation or an LLC? It depends onyour needs, your business plan, and many other factors.

John ...

I wanted to protect my personal assets, of course, but also likedhow forming an LLC limited my paperwork.

Jane ...With the number of employees I have, its better for my companyto be incorporated. It gives me certain advantages for tax savings onhealth and retirement benefits that I wouldnt get as a sole proprietor.

By forming a corporation, Jane protects her personal assets. But, she also formed her entityas a corporation in order to give her the ability to raise capital by selling stock in the company.

If you want to form an S-Corporation, Professional Corporation, or Non-Profit Corporation, please callone of our Business Specialists at 800-209-0128 to form your corporation in just 10 minutes. Learn moreabout the different entity types on our website www.incorporate.com.

John, like many sole proprietors, preferred to form an LLC. As an LLC, his business can passthrough profits and losses from the business to his personal income tax returns. The businessprofits are taxed as Johns income, which enables him to avoid paying income taxes for thebusiness, then paying income tax again on the money he receives from the business. John alsopreferred to form an LLC because it gave him more flexibility in ownership. He did not have toissue stock and is not required to hold annual meetings.


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Butcher, baker, candlestick maker?What business are you in exactly?

Step 4: Identify the Purpose of Your Company

We are often asked, Why do I have to say what my company does? The simplest answer is, Becausethe state says you have to. But, more seriously, it helps states keep track of how many businesses are inwhat industries and categories. This information is helpful in economic development studies. Some statesalso use these classifications to issue tax identification numbers.

John ...I just filled in Real Estate Investing.I figured Hey, no reason to over think this, right?

Jane ...Its just like on a survey when they ask for your occupation.

You just give them a very general topic. I put computer services.

Step 5: For LLCs Only

If you plan to form a corporation, please move ahead to Step 6. Otherwise, indicate who willIf you plan to form a corporation, please move ahead to Step 6. Otherwise, indicate who willrun your LLC and how long you plan to keep your LLC in business.run your LLC and how long you plan to keep your LLC in business.

John ...I chose Perpetual in case some day my son wants to keep thebusiness going. I did have a friend, though, who chose a dissolutiondate because he knew he was going to sell the property he boughtafter only one year.

Most of our customers choose Perpetual, meaning they intend to keep their LLC open and operatingMost of our customers choose Perpetual, meaning they intend to keep their LLC open and operatingindefinitely. If you plan to close your LLC on a certain date, you may wish to choose the other option. Ifindefinitely. If you plan to close your LLC on a certain date, you may wish to choose the other option. Ifat any time you wish to change your selection, we can help you file an amendment.at any time you wish to change your selection, we can help you file an amendment.


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How long? How many? How much?Specific questions for LLCs and corporations.

Step 6: For Corporations (Inc.) Only

If youre forming a corporation, youll need to determine the number of shares you want to have andtheir par value. Par value is the minimum amount for which a share of stock can be traded or sold,as stated in the Articles of Incorporation that we will create for you. Par value does not represent theshares actual market price or future earnings potential.

You can also choose to authorize stock with no par value. This means the stock has no fixed price. Thedirectors can determine a price for the stock whenever they decide to sell it. If you still have questionsabout this topic, please call a Business at 800-209-0128.

Jane...

This is one of the things I got stuck on. But authorizing 1,500 shareswith no par value gave me the freedom to set a price for raisingcapital when the time was right.

Step 7: Identify at Least One Key Executive

At the time of filing, the state may require you to list the key executives of the company. Our customersgenerally pick the individuals who are creating the new company and will be immediately involved in itsmanagement. For LLCs, give the name of the person(s) who will run the company. For corporations, givethe name of the director(s) of the company.

John ...

This was one of my proudest moments, when I put down onpaper that I was the owner of my own LLC ...

If you plan to form an LLC, please skip ahead to Step 7.

If Johns business grows, and he wishes to make his son or another colleague an owner, TheCompany Corporation can help him amend his operating agreement to reflect the new owner.


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Congratulations!Youre almost done.

Provide us with your Shipping, Business, and Legal Address(es).

Step 8: Write Down Your Address(es)

Jane ...

When I started, I was the only director. Soon, Ill be adding twodirectors, and maybe even more as we continue to grow.

See the reverse side of the Order Form and choose the package that is right for your needs and budget.

Step 9: Choose a Package and Enter a Price

We accept credit cards as well as checks and money orders.

Step 10: Choose a Method of Payment

Now send your Order Form to us. Well do the rest, including preparing your filing documents, reviewingthem for accuracy, and then submitting them to the state. The state will then return your official LLC orcorporation documents to us. Upon receipt, we will perform a final review for accuracy and then imme-diately forward them back to you. Its that easy. Its also reliable, accurate, fast, and affordable.

If you have any additional questions regarding your Order Form or any of our packages, please donthesitate to call a Business Specialist at 800-209-0128.

Send in your Order Form today to take advantage of our $50,000 Guarantee*!Send in your Order Form today to take advantage of our $50,000 Guarantee*!*Guarantee details, terms, and conditions are available at our website www.incorporate.com.*Guarantee details, terms, and conditions are available at our website www.incorporate.com.

Relax the Hard Part is Over

As Janes company grows, there is added responsibility. So, she is rewarding two of her topemployees by making them directors and giving them a greater share in the business. While thismay seem like more management for Jane, its not a drain on her time because she regularly

turns to The Company Corporation for help.


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Send in your Order Form todayto take advantage of our $50,000 Guarantee*!

One of the greatest benefits of working with The Company Corporation to manage your business, isthat we are the only company to provide a $50,000 Guarantee*. Follow our step-by-step guide after youincorporate, and if your company is sued and you are held personally liable because your corporate veilis pierced, well reimburse your company up to $50,000 in legal fees.

After you send us your New LLC/Corporation Order Form, you should also think about ...

Being successful as a business owner means more than simply adding LLC or Inc. to the end of yourbusiness name. Thats why The Company Corporation works hard every day to incorporate whats rightfor you into the services we offer. As your business and needs grow, you can turn to us for:

- Employer Identification Number (EIN)

- Obtaining a Business License

- Continuing Registered Agent Service

- DBA/Fictitious Name

- Trademark search

- Registering your business with other states

- Corporate and LLC Amendments

- Corporate kits and supplies for your existing corporation or LLC

- Certified copies of corporate and LLC documents and certificates including:

- Certificates of Good Standing

- Corporate or LLC Amendments

- Articles of Incorporation or Certificate of LLC Formation

- Annual Reports

- Apostilles for Hague Convention countries

- Cancellation or Dissolution

*Guarantee details will arrive with your order. Details also available at www.incorporate.com.


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1. Business Name - Your business name must include a corporate indicator. If none is provided, the indicator LLC will be usedfor a Limited Liability Company, and Inc. will be used for a Corporation.

First Choice:Alternate:

2. State - Where do you want to form your LLC or Corporation?

3. Type of Company - Choose one: LLC (Limited Liability Company) Corporation

(If you want to form an S-Corporation, Professional Corporation, or a Non-Profit Corporation, please call us at 800-209-0128.)

4. Purpose of Your Company:

5. For LLCs only. Corporations skip to Step 6.

a) Who will run your LLC? One or more owners of the LLC will run the company. One or more hired managers (who are not owners) will run the company.

b) How long do you plan to I plan to keep my LLC in business indefinitely (Perpetual)keep your LLC in business? I plan to dissolve (shut down) my LLC on this date:

6. For Corporations only. LLCs skip to Step 7.

a) Unless you instruct us to do otherwise, your corporation will be authorized to issue the maximum number of sharesallowable without triggering higher annual taxes in the State you select. In most states this is 1,500 shares.

Yes, please authorize my corporation to issue the maximum shares without causing additional taxes. No, please authorize this number of shares:

b) The par value is the minimum selling price for a share of stock. Unless you instruct us to do otherwise, your shares will

have a par value of zero.

Yes, please give my corporations shares a par value of zero. No, please give my corporations shares a par value of: (in U.S. Dollars)

7. Name and Address of Key Executives - For LLCs, give the name of the person(s) who will run the company (ownersor hired managers). For Corporations, give the name of the director(s) of the company. In most states, LLCs and corporationsare required to give the name of only one key executive. If you want to list more than three key executives, please provideadditional names on a separate sheet.

8a. Shipping Address 8b. Principal Place of Business 8c. Legal Address(for items from this order) (where business will take place) (for delivery of legal notices)

New LLC / Corporation Order Form

Name:

Address:

Name:

Address:

Name:

Address:

Name:

Address:

Name:

Address:

Name:

Address:

Phone:

Fax:

Email:

Phone:

Fax:

Email:

Phone:

Fax:

Email:


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New LLC / Corporation Order Form (Page 2)

10. Method of Payment Choose one:

Visa MasterCard Discover American Express Check or Money Order EnclosedCard #: Expiration Date:

Name on Card: Signature:

New LLC / Corporation Packages Include:

We prepare and file the Articlesof Formation for your newcompany

Expedited filing service

Company Name Search andreservation

6 months of Registered Agent

service

Free subscription to our quarterlye-newsletter

$50,000 Corporate VeilGuaranteeTM

6 months of access to MyAccount, an online tool ande-mail alert system to help you

manage government and legalrequirements

9. Choose a Package and Enter a Price - See the next page of this form for Package descriptions and prices by Company Typeand State. Choose one:

Complete Basic Economy

Enter the price for the Package, Company Type and State you selected: (see next page of this form)

Example: A Complete Package for an LLC in California costs $313. If you currently live outside of the United States and are

looking to incorporate or form an LLC in the United States, please call one of our Business Specialists at 302-636-5430.

Note: Sales tax will be added to all corporate kits and books shipped to CA, CT, DC, FL, IL, MA, NJ, NY, PA, TX & WA.

Basic Package: Complete Package:Economy Package:

Includes Economy package contentsplus:

1 full year of Registered Agent

service Expedited Shipping via FedEx (oncedocuments are received back fromthe state)

Free publications- The CorporateMinutes Book or LLC Handbook

Corporate Kit including: Leatherette Zipper Binder Digital Media Holder Business Card Holder Customer Brass Nameplate on

Face Custom Mark Maker Embosser

10 Custom Stock Certificates Custom Cover Sheets Set of 12 Tab Dividers Mylar-Reinforced Ledger Set

1 full year of access to ourexclusive My Account service

Includes Basic package content plus:

TCC priority Handling

Obtain Federal Employee IDNumber (EIN)

Application for S-Corp ElectionForm 2553 (optional)

3-Book Legal & Tax ReferenceLibrary published by Nolo:

Legal Forms for Starting &Running a Small Business (w/ 60+forms & CD-ROM)

Tax Savvy for Small Business(includes 18 forms)

Legal Guide for Starting &Running a Small Business


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Corporation Package Prices (including state fees.)

Prices reflected were last updated on October 23, 2008. Current pricing may vary as individual states change their fees.Please call or visit us online for an accurate quote.

New LLC / Corporation Order Form (Page 3)

CorporationLLCBasic

$399

$409

$511

$444

$419

$409

$474

$534

$409

$534

$384

$359

$704

$539

$444

$434

$429

$604

$446

$409

$490

$504

$424

$434

$409

Economy

$219

$229

$311

$264

$239

$229

$294

$354

$229

$354

$204

$179

$524

$359

$264

$254

$249

$424

$266

$229

$310

$324

$244

$254

$229

Complete

$519

$589

$631

$564

$549

$479

$659

$654

$564

$654

$554

$479

$524

$579

$539

$554

$749

$724

$556

$529

$635

$624

$564

$624

$529

Basic

$399

$469

$511

$444

$429

$359

$539

$534

$444

$534

$434

$359

$404

$459

$419

$434

$629

$604

$436

$409

$515

$504

$444

$504

$409

Economy

$219

$289

$331

$264

$249

$179

$359

$354

$264

$354

$254

$179

$224

$279

$239

$254

$449

$424

$256

$229

$335

$324

$264

$324

$229

Complete

$519

$529

$631

$564

$539

$529

$594

$654

$529

$654

$504

$479

$824

$659

$564

$554

$549

$724

$566

$529

$610

$624

$544

$554

$529

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

D.C.

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

MinnesotaMississippi

Missouri

Complete

$564

$679

$674

$479

$514

$449

$704

$288

$584

$469

$704

$504

$549

$710

$519

$479

$519

$499

$559

$624

$611

$684

$549

$599

$479

$487

CorporationLLCBasic

$444

$559

$554

$359

$394

$329

$584

$268

$464

$349

$584

$384

$429

$590

$399

$359

$399

$379

$439

$504

$491

$564

$429

$479

$359

$367

Economy

$264

$379

$374

$179

$214

$149

$404

$168

$284

$169

$404

$204

$249

$410

$219

$179

$219

$199

$259

$324

$311

$384

$249

$299

$179

$187

Complete

$554

$679

$664

$479

$484

$449

$564

$319

$549

$524

$629

$504

$549

$999

$519

$479

$594

$489

$534

$654

$591

$919

$539

$589

$479

$534

Basic

$434

$559

$544

$359

$364

$329

$444

$299

$429

$404

$509

$384

$429

$879

$399

$359

$474

$369

$414

$534

$471

$799

$419

$469

$359

$414

Economy

$254

$379

$364

$179

$184

$149

$264

$199

$249

$224

$329

$204

$249

$699

$219

$179

$294

$189

$234

$354

$291

$619

$239

$289

$179

$234


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2711 Centerville Road, Suite 400

Wilmington, DE 19808

TOLL FREE 800-209-0128

PHONE 302-636-5430

FAX 302-636-5454

WEB www.incorporate.com

Incorporating what's right for you.SM

Documents

Tcc How to Incorporate Guide2