A corporation is a type of business entity that an entrepreneur may elect to pursue when forming a new business entity. Specifically, a corporation is one of the more popular business entities that business owners choose due to the various protections it affords its owners.
Notwithstanding, the popularity of corporate business entities does not necessarily mean that they are easy entities to form and operate. As such, the assistance of a Tennessee incorporation lawyer can help business owners tackle the many legal issues that arise during the incorporation of a new business.
If you are seeking to form a corporation, it is critical that you contact the Tennessee incorporation law firm of Douglass & Runger to learn more about your legal options.
Benefits And Drawbacks Of Incorporation
One of the primary benefits of a corporation is the protection it offers to the owners of the corporation: its shareholders. In general, a shareholder is not personally responsible for the debts or liabilities of the corporation. Thus, even if the corporation must eventually dissolve and wind up its affairs due to financial constraints, the shareholders themselves will generally retain no liability for paying any of the corporation’s outstanding debts.
Those considering incorporating must also appreciate the tax disadvantages of this form of business entity. In general, a corporation’s profits are subject to “double taxation” in that they are initially taxed when the corporation receives them (the corporation pays an income tax on its profits) and, if these profits are shared with the shareholders in the form of a dividend, the shareholder must pay taxes on the dividend on its income tax return.
Issues Surrounding Incorporation And Corporate Operations
When you decide to begin a new corporation, there are a host of legal issues that must be handled at the outset. From making the appropriate filings with the Secretary of State to the process of novation, an experienced incorporation attorney can help make the process of getting a corporation up and running easier:
Filings with the Secretary of State
Authorization of the Issuance of Shares
First Meeting of the Shareholders
Novation
Annual Reports
Contact A Seasoned Memphis Incorporation Lawyer Today To Learn More
Although many individuals enjoy the benefits associated with operating a corporation, forming a corporation involves many steps that, if not taken, can result in legal trouble. Douglass & Runger is a Memphis-area law firm that can assist you in completing the necessary steps to incorporate and get your new corporation up and running.
Business Law Matters
When starting a business, consider the legal structure: partnership, LLC, or corporation. Formation services can help. Plan for business succession and legal issues such as disputes and dissolution. Understand business law and legal resources for help.
