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Advantages Of Having A Corporation

Mar 22, 2008
A Corporation is always having separate and distinct legal entity under the state laws. These laws are different. The individuals who are taking part in the legal entity consist of board of directors, shareholders and also the officers. The corporation can legally enter the contracts, conduct the business and pay taxes. They can even file and defend the lawsuit. You should always consult your lawyers or legal professional before incorporating the business. The legal professionals will suggest you which corporation is best for your business.

Below the list of some advantages are given for operating your business as corporation in Florida:

You should always have a limited liability - Limited Liability Corporation in Florida or LLC Florida is one of the main reasons to have a corporation. The corporation is totally different from other business. Since it has separate legal entity the shareholders' personal assets are not at risk for clearing any credit.

Tax Treatment in Florida: Register Florida Corporation or the companies who are registered as corporation in Florida enjoys special privileges on corporate tax rate. The tax rate is totally different for share holders of a corporation. They only have to pay tax on the salaries and incentive they are fetching from the corporation. The corporation sometimes offers stock options to the employees. This will enable the corporation to make the employee more loyal o the company.

Benefits Enjoyed by the employee of the corporation: The employees who are the stock holders of the company enjoy tax deduction on health insurance. They also enjoy tax deduction for travel and other expenses.

Investors get easily attracted to the Corporation: there are different types of corporation in Florida like Florida S Corporation, C Corporation, File Florida Corporation. In all these corporation one thing is common. Once you buy a stock of the corporation you get an ownership in the corporation. These ownership interests make the investor more attractive towards the corporation. There is also another reason which attracts the investor more. The corporation does not get closed if the Board members, the officers and the shareholders leave the business.

Shares are Transferable: Corporate stocks are free to buy and sold. The corporate is not responsible to see who the shareholders are. The shareholders can sell their stock to the other people. Even after their death their stocks get transferred to his or her heirs. But this transfer of stock is restricted and as well as regulated by federal and state securities law.

The basic structure of the Corporation: The owners of the corporation are those who are the share holders of the Corporation. These owners elect the Board of Directors who in their turn elect the officers. These officers are given different post like CEO, treasurer, secretary, president or the vice president.

In large corporation there are different other posts like Chief Human Resources Officer, Chief Financial Officer and other management officers. The officers are bound to follow the rules and regulation set by the Board of Directories. These officers have to manage the daily operation of the cooperation.
About the Author
Learn the benefits to creating your company as an LLC Florida. Find out how much more money you can earn by creating an incorporate business Florida.
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