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MyCorporation Frequently Asked Questions
What kind of business should I form?
When you choose to incorporate your business, its is important to consider the various advantages and disadvantages that each business structure provides. For many business owners, it can be difficult to compare these entity types directly and decide which is the right choice. Use their comparison chart to help you decide which entity makes the most sense to help you meet your business goals.
What's the Best Entity to Form?
If you're seeking favorable tax treatment... Form an LLC. An LLC can help you separate your personal assets from those of the business and can also choose how it wants to be taxed. LLCs are treated as a "pass-through" entity with single taxation and may also be taxed as S-Corporations if they qualify.
If you're thinking about expanding to even more franchises... File your business as a Corporation. This legal structure offers liability protection, plus a formal business structure that potential investors can invest capital in and reduce potential audit risk. Franchise owners may also find it necessary to file for a DBA or Doing Business As name to ensure that their business may be conducted under the franchise name.
How do I create a non-profit?
Pre-Incorporation matters.
Incorporating your non-profit organization.
Choose a business name and check for availability.
Prepare and file articles of incorporation.
Create bylaws.
- Hold an organizational meeting.
- Get your employer identification number.
- Applying for tax exemptions
What is an LLC Operating Agreement?
Most states do not require an LLC to have an Operating Agreement (in fact, many states do not require an Operating Agreement to be in writing). As a result, the law is pretty silent on what is required within an operating agreement. Whether or not your business is located in a state that requires an operating agreement, it is always wise to have a written operating agreement for any LLC. An operating agreement protects your limited liability status, helps prevent any financial and management disputes, and ensures that the LLC is conducted the way you want, and not by the state's default rules.