Description
of Corporations Organized in Delaware
Before
deciding which type of corporation best suits your
business needs, always consult with your legal or
financial advisors. ACME Filings Corp. is a registered
agent in the State of Delaware and does not offer
legal or tax advice. We are here to help you start
your new business as quickly and cost effectively
as possible.
For
more detailed information, please be sure to speak
with a qualified legal and/or financial advisor. You
may address your questions to our 
Tax and Accounting Services
at tax@delawarecorp.net.
General Corporation
The
general corporation is the most common corporate structure.
This type of corporation is a separate legal entity
that is owned by stockholders. A general corporation
may have an unlimited number of stockholders that,
due to the separate legal nature of the corporation,
are protected from the creditors of the business.
A stockholder's personal liability is usually limited
to the amount of investment in the corporation and
no more.
Advantages
-
Owners'
personal assets are protected from business debt
and liability
-
Corporations
have unlimited life extending beyond the illness
or death of the owners
-
Tax
free benefits such as insurance, travel, and retirement
plan deductions
-
Transfer
of ownership facilitated by sale of
shares of stock owned by individuals
outside the State are not subject to any Delaware
taxes.
-
Shares
of stock owned by individuals outside the State
are not subject to any Delaware taxes.
-
Change
of ownership need not affect shares of stock
owned by individuals outside the State are not
subject to any Delaware taxes. management
-
Shares
of stock owned by individuals outside the State
are not subject to any Delaware taxes.
-
Easier
to raise capital through sale of stocks and bonds
Disadvantages
Close
Corporation
There
are a few minor, but significant, differences between
general corporations and close corporations. In most
states where they are recognized, close corporations
are limited to 30 to 50 stockholders. In addition,
many close corporation statutes require that the directors
of a close corporation must first offer the shares
to existing stockholders before selling to new shareholders.
This
type of corporation is particularly well suited for
a group of individuals who will own the corporation
with some members actively involved in the management
and other members only involved on a limited or indirect
level.
To
be incorporated the name of the corporation must include
one of the following:
- Incorporated
or Inc.
- Corporation
or Corp.
- Association
- Institute
- Union
- Limited
or Ltd.
- Club
- Foundation
- Fund
- Society
- Syndicate
Non
Stock - Not for Profit Corporation
You
may address your tax questions to our
Tax and Accounting Services
at tax@delawarecorp.net.
Major
Credit Cards accepted. 