How to Form a Corporation or LLC-FAQs
Why Should I Incorporate?
Incorporating is an important step to providing you and your business with more security. It can even help you save money. The benefits are compelling, so why put it off? Don't wait: here are seven reasons you should incorporate today.
Protect personal assets.
The limited liability feature of corporations offers protection for your personal assets. Why worry about losing your home or family savings, in the event of a business reversal or lawsuit? As a busy entrepreneur, you have too many other things to think about.
Increase tax savings.
Take advantage of tax saving opportunities not available to sole proprietors and partnerships. You can decrease your corporation's taxable income by offering benefits to your employees, such as pensions and profit sharing. Medical, life and disability insurance premiums are completely tax deductible.
A corporation can raise money through the sale or issuance of stock, bonds or other securities.
If an owner of a corporation dies, the â€œperpetual existenceâ€ feature of corporations allows stock ownership to be quickly transferred, thereby allowing your company to continue operating without interruption.
Simplify estate and family planning.
Shares of a corporation or LLC can be readily distributed to family members following your estate or business succession plan.
Enjoy corporate discounts.
The retail, hospitality and banking industries all value corporate accounts and offer attractive discounts to secure your business.
Forming a corporation or LLC is easy, and it takes less than 30 minutes to place your order. Call us at 1-800-441-5940 or place your order online now.
We hope we've inspired you to take action! Here's what you need to get started.
How do I form a corporation or LLC?
Forming a corporation or LLC is easy with American Incorporators Ltd.! You can form a corporation or LLC online, or place your order over the phone by calling 800.441.5940. Either way, it usually takes less than 10 minutes to complete the process.
What information do I need to get started?
We will need:
- Your contact information
- The name of the company
- The state of formation
- If you are forming a corporation, thenumber shares of stock you want issued
- The names and addresses of the initial directors or members
- Your company's legal address
We will handle everything else!
- We will check the company name for availability
- We will file the certificate of incorporation or formation with the appropriate state
- We will send you your filed document once the process is complete
Do I need to hire an attorney?
Most states don't require an attorney's services when you form a corporation or LLC. Actually in many cases attorneys will use American Incorporators to process their own filings since we can often do it faster and less expensively. We do strongly recommend that you consult with an attorney if you have any legal questions, if your business is complex or if you plan on doing business internationally. American Incorporators does not provide any legal or tax advice.
Which type of entity should I choose?
Deciding between a corporation and limited liability company (LLC) or choosing which type of corporation to form is a decision best made in consultation with trusted advisors, such as a lawyer or accountant. While we can't advise you on such matters, we can explain the differences and point out the benefits of corporations and limited liability companies (LLCs).
Click here for our entity comparison chart.
Are there any requirements for choosing a company name?
In most states your corporation's name must include an ending that will indicate that the company is a Corporation or LLC. Some common corporate endings are Inc., Ltd., Co. Company, Corporation, Incorporated or Limited,
Some common LLC endings are: LLC, Limited liability Company
When choosing a company name, have an alternative in mind, just in case your first preference is not available.
What is the difference between "par" and "no par" stock and how much stock do I need?
"Par value" stock has a stated value on its face and represents the minimum worth of the shares. "No par value" stock has no stated value. Many of our clients authorize the minimum amount of no par value stock in order to minimize incorporating fees and annual franchise tax. If you need to change either the number of shares or the par value at a later date, it is an easy process that we can help you with.
How long will it take to receive official documents?
Corporations and LLCs formed in Delaware are filed the same day you place an order with us. You can typically expect to receive a copy of the filed document within one to two business days.
The majority of the other states will take 3-7 business days for you to receive a copy of the filed document assuming expediting services are ordered. Non-expedited filings can take 10-15 business days in most instances.
What is a registered agent and why do I need one?
Most states require you to list a registered agent with a physical address in the state of formation. The responsibilities of a registered agent include forwarding any government notices and accepting any legal documents on the company's behalf. Not responding to a service of process in a timely manner could result in a default judgment against the company.
Many clients choose American Incorporators Ltd. to act as their registered agent so they will not miss any important annual report due dates. Not filing the annual report by the due date can result in penalties up to $400 and the company falling out of good standing with the state. It is also a good idea to use American Incorporators Ltd. as your registered agent office to avoid listing your personal home address on formation documents. Corporate documents are public records. If you want to keep your company's business separate from your personal address, we recommend a commercial registered agent like American Incorporators.
What should I look for when choosing an incorporation service provider?
Many service providers offer similar services, but that doesn't mean they are all alike. Ask yourself the following questions:
- How much experience do they have? American Incorporators has been managing successful formations for 35 years. Our founder is a prominent Delaware attorney with a wealth of expertise. Our management team represents nearly 70 years of collective experience.And our specialists average over 10 years in the industry.
- How accessible are they? Everyone offers online order tracking. But not everyone offers live, personalized customer service from trained specialists who can answer your questions quickly and knowledgeably over the phone. American Incorporators assigns you a dedicated account rep who knows your business and is always available to help you move forward.
- Do they provide real value? Fast service and a low price are worth nothing, if you are not satisfied with the end product. At American Incorporators, we offer a choice of incorporation packages at competitive prices, we process orders quickly and accurately, and we are proud of the professional packages we deliver to our clients.
- Are there hidden fees? Our packages include agent service for the remainder of the billing cycle which in most states equals a full year. We do not know of any other company that offers this benefit. Most other companies will only provide 3-6 months of agent service for free if they do so at all!
Before making your decision, find out what our clients say. We hope to welcome you to the American Incorporators family soon!
I'm not a US citizen. Can I still set up a corporation or a LLC in the United States?
Yes. You do not need to be a US citizen to set up a US company. American Incorporators can provide you with documents you will need to do business overseas such as:
- Certified Copy of a document
- Certificate of Incumbency
- We can notarize your corporate documents and have them apostilled by the state.