When a business is incorporated, a legal person is created that is separate and distinct from its owners. Like individuals, a corporation can enter into contracts, lend and borrow money, sue and be sued, and own property.
Some of the benefits of incorporating include:
• Limited Liability – The liability of the owners of the corporation is limited to their investment in the corporation and are not personally responsible for the debts of the corporation.
• Lower Tax Rates – Corporate tax rates are generally lower than personal tax rates so incorporating may provide significant tax savings. • Access to Capital – Corporations can sell shares of the company to raise money and are more likely to be eligible for a bank loan compared to unincorporated businesses.
• Enhanced Credibility – Corporations are generally perceived as being more stable than unincorporated businesses.
• Continuous Existence – A corporation can continue indefinitely while unincorporated businesses cease to exist when their owners die.
A company is incorporated by filing articles of incorporation with the government. Articles of incorporation are a document that establish the existence of a corporation.
Once the articles of incorporation are approved, the company will receive a certificate of incorporation. Once a certificate of incorporation is received, your corporation has been officially created, but there are several other steps that must be completed in order to comply with legal requirements and get your newly incorporated company off to the right start.
Incorporight provides you with all the tools you need to incorporate and organize your business in an efficient, cost effective, and legally compliant manner.
Corporate maintenance refers to two ongoing legal obligations of a corporation. The first is the filing of relevant government forms to keep the corporation’s information up to date with the government registry.
The second is the preparation of certain documents relating to decisions of the corporation – a corporation must keep records of important decisions made by its directors and shareholders. Failure to properly maintain a corporation can result in fines, dissolution, and even the loss of the limited liability protection of the corporation.
Incorporight provides an innovative digital solution for maintaining your corporation. The Incorporight platform modernizes corporate maintenance and record keeping by storing all of your corporate records in one easily accessible place and allows you to make changes to your corporation with the click of a button.
Our Managed Corporation service handles all of your corporate maintenance and allows you to make unlimited changes to your corporation. Alternatively, corporate maintenance services can be purchased à la carte on an as needed basis.
Owners of a corporation are referred to as “shareholders”. Shareholders own shares in the corporation, which are the units of ownership in a corporation.
A shareholder may own shares of a corporation without any involvement in its management or day-to-day activities. A corporation may have one or more “share class”, with each share class carrying different rights. Rights that may be assigned to a share class include the right to vote at shareholders’ meetings, the right to receive a dividend, and the right to receive the corporation’s assets upon dissolution (closing) in priority to other share classes.
The rights of a corporation’s share class(es) are set out in the articles of incorporation and can only be changed by amending the articles of incorporation.
The Incorporight platform allows you to make various changes to your shares, shareholders, and share classes quickly and efficiently. Our Managed Corporation service allows you to make unlimited changes to your corporation’s shares and shareholders and numerous other changes in addition to ensuring all internal records are maintain and stored in compliance with legal requirements.
A director or, if there is more than one, the board of directors, are the highest level of management within a corporation. Private for-profit corporations are required to have a minimum of one director, who may also be the sole shareholder and officer.
The board of directors make major decisions for the corporation including appointing the officers of the corporation, approving annual budgets, informing shareholders of important matters, and declaring dividends. Directors are typically elected by the shareholders and can be removed by the shareholders. A corporation’s by-laws may permit the board to elect or remove directors unilaterally.
Officers are the most senior employees of the corporation and are appointed by the director(s) to manage the day-to-day activities of the corporation. Typical officers include the president, treasurer, and secretary. In smaller corporations, one person may be the sole director, officer, and shareholder. A corporation is legally required to report any changes to its officers and directors, and their contact information.
The Incorporight platform allows you to view, update, and change your corporation’s directors and officers, and their contact information quickly and efficiently.
The best way to start and maintain a corporation.