Business Formation
The most frequently asked tax questions related to Business Formation
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Answer Tax QuestionsSole Proprietorship - Schedule C
Can I file using short Form Schedule C-EZ instead of long Form Schedule C?
Asked Tuesday, October 24, 2000 by an anonymous user
Sole Proprietors with business expenses less than $5,000, do not have a net loss from the business, use the cash method of accounting, do not have an inventory during the year, have only one business as a sole proprietor, have no employees during the year, are not required to file Depreciation Form 4562, are not required to file Office in Home Form 8829 and have no prior year unallowed passive losses, may use Schedule C-EZ.
What is the difference between Co, Inc and Ltd ?
Asked Monday, October 16, 2000 by an anonymous user
All these terms refer to incorporated companies. A limited corporation or company is an incorporated business.
What is a Limited Partnership ?
Asked Monday, October 16, 2000 by an anonymous user
A limited partnership includes both general and limited partners. A limited partner is liable only to the extent of what he or she has contributed capital to the business. Limited partners are often investors that do not participate in the business decisions.
Does a corporate name have to include a suffix ?
Asked Monday, October 16, 2000 by an anonymous user
The corporate name you select must include a suffix.
It must be either spelled out or abbreviated. When you fill out the incorporation request, include your choice of Incorporated (INC), Corporation (CORP), Professional Association (PA), Professional Corporation (PC) or Limited Liability Company (LLC) / (LLP).
It must be either spelled out or abbreviated. When you fill out the incorporation request, include your choice of Incorporated (INC), Corporation (CORP), Professional Association (PA), Professional Corporation (PC) or Limited Liability Company (LLC) / (LLP).
How many officers and directors does a corporation need to have ?
Asked Monday, October 16, 2000 by an anonymous user
Generally, only one officer or director has to be appointed with the Articles or Certificate of Incorporation. This requirement may vary from state to state. Generally no more than three are created. Requirements for LLC's also vary from state to state. Speak to your local CPA about your corporations requirement's in your state.
Does one stock certificate represent one share of stock ?
Asked Monday, October 16, 2000 by an anonymous user
Generally not. One stock certificate can represent any number of shares of stock up to the amount authorized, as stated on or in the Articles or Certificate of Incorporation.
Is there a fee for reserving a name when incorporating ?
Asked Monday, October 16, 2000 by an anonymous user
Generally yes. In most states a fee ranging from $20 to $75 will be charged for name reservations.
In the incorporation process , what are the Articles of Incorporation ?
Asked Thursday, October 12, 2000 by an anonymous user
After a person selects the corporate name and state of incorporation, a document called The Articles (or Certificate) of Incorporation must be filed with the Secretary of State of the state of incorporation. The key sections are the Corporate Name, the Purpose of the corporation, Duration, Authorized capital, Name and address of the registered agent and Other required provisions. Speak to your local CPA about the filing requirements and content of the Articles of Incorporation.
What function does the Incorporator perform?
Asked Thursday, October 12, 2000 by an anonymous user
The incorporator is the person who initially organizes the corporation and files the Articles of Incorporation. The Incorporator can be the CPA, lawyer, prospective shareholder or another individual. The Incorporator usually, uses a document called an "Action of Incorporator" to perform important functions, such as electing directors if they are not named in the Articles of Incorporation. The Incorporator also adopts bylaws, and signs the Articles of Incorporation. The "Action of Incorporator" must be dated and inserted into the corporation's minute book.
