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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.
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.
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