Corporation Formation Services
Rego Law has been incorporating businesses since 1976 and is a trusted provider of business filing, incorporating, LLC, and corporation formation services in Bristol, RI. We offer complete filing support, which includes drafting of your articles of incorporation, delivery and filing with government offices, the preparation of your tax forms for all entity types, corporate records management, annual reports and meeting minutes, and corporate kits, seals, and more.
Incorporation is the forming of a new corporation (a corporation being a legal entity that is effectively recognized as a person, albeit a fictitious one, under the law). The corporation may be a business, a limited liability company, or a nonprofit organization.
Contact us for a free initial phone consultation to learn how we can best assist with your business filing, incorporation, or limited liability company.
- Business Law
- Limited Liability Companies (LLCs)
- Nonprofit Corporations
- 501(c) Tax-Exempt Corporations
Protection of Personal Assets: Safeguarding personal assets against the claims of creditors and lawsuits. Sole proprietors and general partners in a partnership are personally and jointly responsible for all the liabilities of a business, such as loans, accounts payable, and legal judgments. However, in a corporation, stockholders, directors, and officers are typically not liable for their company’s debts and obligations. They are limited in liability to the amount they have invested in the corporation (e.g., If $100 in stock was purchased, no more than $100 can be lost). Corporations and Limited Liability Companies (LLCs) may hold personal assets like houses, cars, or boats. If one is personally involved in a lawsuit or bankruptcy, these assets may be protected. A creditor of the owner of a corporation or LLC cannot seize the assets of the company; however, they can seize their ownership shares in the corporation, as that is considered a personal asset.
Transferable Ownership: Ownership in a corporation or LLC is easily transferable to others, either in whole or in part. Some states’ laws are particularly attractive to this end.
Retirement Funds: Retirement funds and qualified retirement plans, such as a 401(k), may be established more easily.
Durability: A corporation is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the corporation.
Credit Rating: Regardless of an owner’s personal credit scores, corporations acquire their own credit rating and build a separate credit history by applying for and using corporate credit.
In the United States, corporations are taxed at a lower rate than individuals. Also, they can own shares in other corporations and receive corporate dividends 80% tax-free. There are no limits on the amount of losses a corporation may carry forward to subsequent tax years. On the other hand, a sole proprietorship cannot claim a capital loss greater than $3,000 unless the owner has offsetting capital gains.
Raising Funds Through the Sale of Stock: Capital from investors can be raised for corporations easily through the sale of stock.