Corporations have existed since before the U.S.A. This longevity and the resulting stability provide great appeal. The separation of economic and voting rights provides further flexibility for those needing it. These benefits are accompanied by increased complexity however. From meetings to additional filings, a corporation comes with its own set of rules.
Allow us to handle the incorporation process and file your yearly reports. We will file all necessary paperwork the state and act as your registered agent. In future years, we will file your periodic report and will keep you compliant.
Colorado Corporations are required to maintain extensive records. You may store the records digitally using our system. This ensures they are always accessible and you stay in compliance. The list includes, but is not limited to:
An S corp is a pass through tax election with the IRS. This means corporate income flows directly onto the owners tax returns. Profits are not taxed twice. There is a limit of 75 shareholders and each owner must be a U.S. resident. Outside of taxes the corporation remains identical.
The corporate veil is the legal concept that a corporation is its own person under the eyes of the law. A corporation may do many of the same things a person can, including entering into contracts and guaranteeing debts. This separation limits the liability owners face to their initial contribution in. Business creditors cannot seize the personal assets of owners. This separation means some companies would do well to form multiple corporations. In this way risky assets and valuable contracts can be separated from each other.
Colorado's Secretary of State only requires you to file a periodic (annual) report and maintain a registered agent. The annual report is simple to file, or you may have us do it to keep your name and signature out of public records.
Only sometimes will forming a corporation be a better choice. Their ability to issue preferred shares, which may have enhanced voting or economic rights, is one advantage. Rarely will small businesses find the increased cost and complexity worthwhile though. Many mistakenly choose a corporation solely for the sub-chapter s taxation election. In fact, limited liability companies may also be taxed as an s-corp in addition to a partnership, disregarded entity or c-corporation.
If you are small enough to consider being a sole-prop, then forming a limited liability company is probably for you. They offer many of the same benefits a corporation does, but are easier to start and maintain. They also provide more flexible taxation among other benefits. Learn more about incorporating in Colorado here and our registered agent service.
We don't complicate things. Everything is handled correctly, the first time, so you have one less thing to worry about. After that, we will only bug you again when your periodic report is due next year. It really is that easy.