You will need to establish the legal structure for your business, such as a C Corporation, S Corporation, or a Limited Liability Company. This will depend on the individuals involved in your business, tax implications, and liability risks. Once you have decided on the legal structure that is best for you, you will need to register your business in the jurisdiction of your choice.
Operationally, the two corporations are the same. The only difference is how each entity is taxed. A C Corporation is subject to the double taxation, where the corporation is taxed once on its profits, and then if any shareholder dividends are issued, the shareholders are then taxed on those dividends.
Yes, if you follow a few simple rules:
Form the corporation fully and completely (this means issuing stock for consideration, electing directors, appointing officers, adopting bylaws and filing all required state and federal forms).
Adequately capitalize the corporation at its inception.
More than 80% of Fortune 500 companies are incorporated in Delaware, and for good reason. Delaware is widely regarded as having one of the most sophisticated and modern corporate statutes of any state, and it devotes significant time and effort to developing corporate expertise within its courts.
Depending on what is at stake, there are several options available for protecting your business ideas from being stolen or copied by others. If you would like to ensure that your business partners or employees do not share important business ideas or information with others, your best bet may be to create a non-disclosure or non-compete agreement that employees can be required to sign.
Yes, there is an advantage to an employer having written contracts with its employees because there could be provisions such as non-compete and confidentiality, which are important to protect your business. It is very important to have written contracts with independent contractors.
No matter how small your business, it can be a good idea to have an employee handbook. A document of this nature can clearly establish rules, rights, and expectations for employees. Having these policies memorialized can increase efficiency, and also serve to protect you from litigation.
Employees and independent contractors are two different types of individuals who work for an employer. They are treated differently under state and federal law, and there are many protections and benefits that are afforded to employees that may not be offered to independent contractors.
“Piercing the corporate veil” is a legal term of art that refers to holding a business owner, officer, or director personally liable when they have engaged in wrongful conduct, such as failing to maintain the required separation between the individual and the corporate entity.
Consider these factors before deciding whether choosing an online legal services company over Go Legal Yourself is your best choice:
Other online companies do not analyze what type of entity is best for you.
Other online companies do not discuss the levels of liability protection available to you nor how to conduct your business for maximum protection.