|
After Incorporation
and Other Costs
Most states require that
Corporations and LLCs file a statement and pay a moderate fee
on an annual or biennial basis. This filing requirement, which
is generally referred to as an “Annual Report” or “Franchise
Tax,” updates the state government as to the status of
the company, and permits the company to continue its existence.
C-Corporations
and S-Corporations
Almost every state has a Corporate Records
Requirement. Generally the requirement compels a Corporation to maintain certain
past and present corporate records at its principal office. Such records may
include the current Articles of Incorporation, the Corporate Bylaws, minutes
of shareholder and director meetings, written communications between the shareholders
and the Corporation within the last three years, the Corporation’s stock
transfer ledger, the names and addresses of current shareholders, directors
and officers, the most recent annual report and the financial records from
the last three years.
What are Corporate Bylaws? Click here
to learn . . .
Included in the Premier Incorporation Package, DirectIncorporation.com offers information and tools that
will help assist corporations to comply with the corporate
records requirements of their state.
Click here to learn
more about our services
. . .
Limited
Liability Company (LLC)
Although the corporate records requirement
is usually more stringent for a corporation, an LLC is subject
to the records requirement to a certain degree and should follow
the requirement as far as applicable. States that have corporate
records requirements for LLCs may require a company to maintain
at its principal office the current Articles of Organization,
the Operating Agreement, minutes from various meetings, the company’s
stock transfer ledger, the names and addresses of all current
members, managers, and officers, and the most recent annual reports
and financial records.
What is an Operating agreement?
Click here to learn . . .
Included in the Premier Incorporation
Package, DirectIncorporation.com offers information and tools that will help assist
LLCs comply with the corporate records requirements of their
state.
Click here to learn more about our
services . . .
In order to comply with state business
regulations, most new corporations and LLCs will be required
to obtain a license and possibly pay a state fee before transacting
business. The following is a non-exhaustive list of businesses
that may be required to obtain licenses:
- accountants
- architects
- attorneys
- barbers
- collection agencies
- damage appraisers
- dealers and salespersons
- electrical workers
- employment agencies
- engineers
- manufacturing companies
- nurseries
- real estate brokers
- restaurants and
- security brokers.
After formation, it is urged that
you check with the appropriate state agencies to ensure that
you comply with the license requirements for your particular
business.
In
order to protect the exclusive use of a
company’s name, the company may be
required to obtain a Trade Mark on the
name. In some circumstances, protection
may not be warranted simply by the use
of the name in the Articles of Incorporation
or Articles of Organization.
Every new corporation or LLC is
required to obtain an Employer Identification Number (EIN)
from the IRS. If you have not already applied for an EIN, you
must do so. An EIN can be applied for via mail by filing form
SS-4, or by telephone.
To apply by phone, call: 1-800-829-4933.
To apply by mail, fill out the form and send it to your region’s IRS
office. The regional addresses can be found on the Internal Revenue Service’s
web site: www.irs.gov
For your convenience, click here and download an application for an EIN
(form SS-4)
C-Corporations
It
is important to remember that although
federal taxes are likely to comprise
the most significant portion of a C-Corporation’s
tax liability, the C-Corporation will
also have to pay tax at the state level.
A newly started business should contact
its state’s revenue department
as soon as possible to be put on notice
of its state’s corporate income
tax procedures. Further, it may be wise
to contact a tax advisor for a complete
discussion on complying with state and
federal tax regulations. The States of
Washington, South Dakota, Wyoming, Nevada
and Florida do not have to be concerned
about such requirements, as there is
no state corporate income tax.
LLCs
One of the primary benefits of the LLC is that it is not necessarily subject
to tax at the corporate level. However, one must be aware that to take advantage
of the LLC “pass through” taxation, multi-member (multi-owner) LLCs must file a partnership
tax return (K-1). Filing this form does not mean that the LLC will pay taxes
on income. Instead, the form merely notifies the IRS of the LLC’s “pass
through” taxation to its members. Single-member LLCs are not required to file this form. Instead, a simple attachment to the owner's individual tax return is required. Please contact a tax advisor for further
details.
A handful of states have
a publication requirement. This requirement generally directs
a new corporation or LLC to file a notice of incorporation (organization)
in a newspaper of local circulation. The following states have
such a requirement: Pennsylvania (C and S-Corporations),
Georgia (C and S-Corporations), Arizona (LLCs, C and S-Corporations), Nebraska (LLCs, C and S-Corporations) and New York (LLCs only). If you choose to form
your company through our services, we'll be sure to notify you
of this requirement if it is applicable to your state.
|
|
Back to Top
