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Incorporation
Incorporation - Corporation
An Corporation is a state created business and tax related legal person or entity.
It is a person because it can sue and can be sued as a natural person.
Thus, it is a separate person.
If you are a member of an Corporation, your personal assets are not at stake when your Corporation is sued.
Therefore, it is a favorable entity to form as opposed to forming a sole proprietoship.
If you form an Corporation, you will also need a business license and a federal tax id. If you will sell taxable merchandise or you want to buy wholesale, you will also need a seller's permit.
Note forming an Corporation means that you will have to obtain an Corporation state official certificate and have an operating Corporation agreement as well.
You cannot become an llc unless you register with the state and have the Corporation certificate.
Some people think that obtaining a federal tax id as an Corporation is same as forming an Corporation - Not true! |
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