When you take up incorporation the taxes would be charged at the corporate profit tax rates. The section of corporate profits that the owner or the stockholder receives is called as the dividend. The stockholder is supposed to pay the tax on the dividend at the tax rate charged for the individual. Hence we can say that dividends are a section of the corporate profits that are liable for double taxation. This is one of the major disadvantages of the corporation.

A corporation can be defined as a legal unit, which has its own rights. The corporation has all the legal rights and the responsibilities of a legal person. The corporation is responsible for its own decisions. This would typically mean that the creditors of the corporate cant file against the assets of the stockholders and have rights only against the assets of the corporation. The maximum a stockholder can lose is the cost of his stocks. He would not be losing more than the amount that he has invested in stocks because he is not personally responsible for any of the debts of the corporation.

Incorporation in a business varies from one state to another because the laws vary with every state. It is not necessary that you incorporate in a state where you live in. Earlier people used to incorporate in Delaware because it used to provide them with the most flexible and advantageous laws for incorporation but these days both Nevada and Delaware provide equally flexible laws. Before you incorporate in any state you are supposed to check the laws for

incorporation in that state. But before you incorporate in any state you should take suggestions from a lawyer. The fees in hiring a law firm would be high but with this you would be sure that you are doing the right thing.

The incorporation services for a business would differ from the non-profit organizations and limited liability companies. The first thing that you should do is you should decide which state you want to incorporate your company in. there are many companies that would provide business incorporation service both online as well as offline.

When taking the help of incorporation services you should make sure that the service is customer friendly and provides the services so that it would help the customer run the business smoothly. You should also verify that the services would help you even after you have incorporated by helping you in getting an Employment Identification number, in helping you conduct the first meeting of the corporation and many other things. Business incorporation is important as it helps you in establishing a separate unit for your business apart from the owners and the shareholders. With the help of incorporation you can buy or sell property enter into contacts, and besides this you can also be in a lawsuit. Moreover the business would not suffer due to loss of any partner.

Till very recently incorporation was considered to be a very long process and would take a long time to complete but now the scene is very different. After the establishment of the Business Corporation Act the process has become a lot simpler and faster. There are mainly three steps in business incorporation, which include obtaining a proper corporate name, giving in all the necessary credentials and lastly paying in all the dues.

Once these steps are successfully completed your business can be incorporated. Besides taking the help of a incorporation service you can also incorporate yourself. When you consider incorporating yourself then it can be a difficult process. Incorporation usually takes a few days or hours for completion. However taking the help of incorporation services is the best as they can help you do the incorporation perfectly and correctly. You are required to provide the incorporation service agency with all the necessary documents so that the incorporation can be carried out faster and correctly. The first process should be to secure a name for the corporation. The name that is selected for the incorporation should be unique as incorporation companies have distinct names.

The process of incorporation usually requires filling in various documents. Arranging all these documents from various sources can take a long time but the incorporation service agencies can collect these documents easily as they are aware of the legalities of the incorporation and hence are also aware of the necessary documents required for the incorporation.

Most of the incorporation services provide online services. You are just required to submit your details online and you can finish the business incorporation process within a day or two. The incorporation service agencies would charge a nominal fee that is acceptable and can be paid easily. There are basically two types of incorporation provincial or federal. You can opt for the type of incorporation depending on the volume of your business. When you opt for provincial incorporation you can carry out your business only in the specific province but with the help of federal incorporation you can you can carry out your business in all the provinces just by registering. When opting for federal incorporation you can work with the same name in all the provinces but you would have to maintain the detailed annual paperwork.