Q.
What are the procedures, advantages and costs of
incorporating myself or my business?
A.
Basic corporations are established by filing
Articles of Incorporation with the Secretary of
State. The information needed for the Articles
of Incorporation and a short explanation are as
follows:
1.
NAME OF THE CORPORATION:
Your corporation may not have the same name as
another existing corporation in Florida.
Generally speaking, your attorney will do a name
check before filing the Articles of
Incorporation.
2.
CORPORATION’S EXISTENCE:
A corporation is a separate entity and the
articles generally state the existence shall
continue thereafter in perpetuity.
3.
GENERAL PURPOSE:
General purposes of corporations are usually for
any or all lawful business permitted any
corporation under the Florida General
Corporation Act, but can be for one specific
purpose.
4.
STOCK:
The corporation must have a specific number of
common stock and each shall have a specified par
value.
5.
PREEMPTIVE RIGHTS:
Shareholders may be entitled in the articles to
have preemptive rights with respect to any
unissued or treasury shares of ownership.
6.
REGISTERED AGENT:
The corporation must have a registered agent or
someone who will receive summonses (service from
sheriff) if the corporation is sued. Change of
agent or address must always be reported to the
Secretary of State.
7.
BOARD OF DIRECTORS:
The corporation must list the initial board of
directors and their addresses.
8.
INCORPORATOR:
The name and address of the incorporator must be
listed in the articles.
SOME ADVANTAGES OF A CORPORATION:
The main advantage of a corporation is limited
liability of shareholders, thus protecting
personal belongings. Other advantages include
the tax benefits of “writing off” hospital
bills, doctor bills, dental bills, medical and
hospital insurance, disability insurance and
other types of benefits. There are other tax
write-offs available that are not usually
written off by individuals.
