Vikmar Tax & Accounting Specialties, fulfilling Bookkeeping, Payroll, and Tax Preparation needs of small businesses in the East Bay and Yosemite Foothills.

Incorporate Your Business Continued

How do I know if my name is available?
I will request your two top name choices. If neither of these is available, I will contact you for other name choices.

How do I name my corporation?
First, I recommend that you spend some time coming up with a name for your corporation. Although each state has different rules concerning the naming of your corporation, the most common rule is that it must not be deceptively similar to another already formed company. The corporate name must include a suffix. Some examples are "Incorporated", "Inc.", "Company", and "Corp." However, your state may have different suffix requirements.

What are the benefits of incorporating?
The primary advantage of incorporating is to limit your liability to the assets of the corporation only. Usually, shareholders are not liable for the debts or obligations of the corporation. So if your corporation defaults on a loan, unless you haven't personally signed for it, your personal assets won't be in jeopardy. This is not the case with a sole proprietorship or partnership. Corporations also offer many tax advantages that are not available to sole proprietors.

Some other advantages include:

• A corporation's life is unlimited and is not dependent upon its members. If an owner dies or wishes to sell their interest, the corporation will continue to exist and do business.
• Retirement funds and qualified retirement plans (like 401k) may be set up more easily with a corporation.
• Ownership of a corporation is easily transferable.
• Capital can be raised more easily through the sale of stock.
• A corporation possesses centralized management.

What is a Registered Agent?
Most every state requires that a corporation have a registered agent. That agent must have a physical location in the formation state. The registered agent can typically be any person (usually a resident of the state) or any properly registered company who is available during normal business hours to receive official state documents or service of process (lawsuit).

How many Directors/Shareholders do I need?
Most states allow for one person to act as shareholder, director, and all officer roles.

How many shares of stock should I choose, and at what par value?
Typically, I provide a default of 100 shares, although you can choose any amount you want on all orders. Your par value is not requested on all orders, and is usually expressed as "No Par Value" or some dollar amount per share such as "$1.00" or "$0.10." Some states require that you do not issue your stock for less than the par value. Some states also base their fees on the number of shares authorized, multiplied by the par value.

What is a Federal Tax Identification Number or EIN?
Your corporation is required to have an Employer Identification Number (EIN) also known as your Federal Tax Identification Number so that the IRS can track payroll and income taxes paid by the corporation. But, like a social security number, an EIN is used for most everything the business does. Your bank will require an EIN to open your corporate bank account.

Viktorea Martinez

East Bay Office:
P.O Box 1149
El Cerrito, CA 94530
510-222-1916 office
510-222-1408 fax

Sonora Office:
P.O Box 2200
Columbia, CA 95310
209-532-0002 office
209-532-1629 fax

E-mail:
viktorea@vikmaracct.com