What is a corporation?
A corporation is a business entity that is registered as such with the state. Under the law, a corporation acts as an artificial being and is able to participate in business transactions. Corporations are considered to be legal persons and have many of the same rights and responsibilities that individuals do.
Ownership of a corporation is accomplished by holding shares of stock in the corporation. By selling stock, corporations are able to generate funds to expand the business or to increase capital.
What are the benefits of incorporation?
The primary benefit of establishing a corporation is protection from legal liability. In essence, shareholders and officers of the corporation are protected from personal liability for claims against the corporation. This protection is not absolute, however. Under certain circumstances (usually related to fraud), officers and shareholders may be held personally liable for the conduct of the corporation.
Incorporation has other benefits. Banks are more likely to loan to businesses that have incorporated. Corporations exist in perpetuity, they continue after the death of individual members or stockholders. Although the specific tax obligations of corporations differ according to the specific corporate form, corporations are able to reduce their taxable profits through qualified business expenses.
Why hire a law firm to incorporate?
Start your business off right with the help of an experienced business law firm. A law firm can help you choose the correct corporate form, assist you in setting up a proper stock structure, and address crucial questions such as what happens in the event a partner dies or leaves the company. A law firm can keep you up to date on regulatory paperwork, and help you avoid pitfalls not addressed by online incorporation services. Save money on future legal fees by consulting with experienced legal professionals at startup time.
Corporate Law Services in Seattle and Tacoma
The lawyers of Dickson Frohlich have decades of legal experience assisting large and small businesses. We are ready to put our expertise to work for your company. Our familiarity with the Seattle and Tacoma court systems will save your business time and money. We will put into plain English your rights and responsibilities as a business owner, and work as a team to provide our clients with a great breadth of legal knowledge and prevent costly mistakes.
Call Dickson Frohlich now, to find out how we can help your business succeed. Call 253-572-1000 for a phone consultation and quote for future services.