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Why aren't non-profit
organizations offered by Proactive Management: Due to the significant legal and tax
planning involved in setting up successful non-profit
corporations, PMI does not offer this form of business
organization as one of our services. We suggest that you
consult with your attorney and accountant in order to fully
understand the specific benefits, responsibilities, and
limitations involved in operating this type of business.
What paperwork is
required to incorporate a business: The basic instrument for incorporating
a business is the articles
of incorporation or articles
of organization. The required contents of these
documents are generally prescribed in a state's
incorporation statutes and include the corporation's name,
period of existence, purpose and power, authorized number of
shares, classes of stock, and other conditions of
operation.
Do I need an attorney to
incorporate my business: No. Corporation statutes do not
require that an attorney be the person(s) or entity who
prepares and files the articles of
incorporation/organization with the state. See
Pricing
How do I get started with
the incorporation process: Compare between the types of business
organizations by visiting our Find Out
More
page. Then choose the type of business you want to establish
and order your corporation or llc online.
What is par value and how
is it determined: Par value has no connection to the
market value of common stock. It is the face or stated value
of a share of stock set by the board of directors. This is
an arbitrary or nominal dollar amount. Stock must be issued
for at least this value.
What's the difference
between par value shares and "no par" shares: Not much. Most states allow shares to
be listed with a "No Par" value in stead of an arbitrary,
monetary par value. This is the key distinction between the
two kinds of shares. However, since some states define
arbitrary values to "No Par" shares when assessing some
filing and reporting fees, the value of these fees can be
higher for "No Par" shares than shares with low par
values.
Are expedited services
available in all states: Not all states offer expedited
processing for business formation documents. Unlike other
corporate formation services, we won't charge you an
expediting fee where the government's document handling
process is basically hurry up and wait.
How long will it take my
company to become officially incorporated: Business formation filings are usually
processed by the states within 3-8 weeks. Filings processed
on an expedited basis are processed in 2-5 business days.
Overnight mailing service is available to all states in our
service area and expedited filing service is available for
specific states. See Our
Services and Prices
Are there restrictions on
corporate names:
States
require that business names be distinguishable from one
another. Names must also describe the type of organization,
such as corporation, limited liability company, or limited
partnership, by using these words or any abbreviation
thereof in the name of the firm.
Names will include:
Corporation: "Corporation," "Company,"
"Incorporated," "Inc.," "Co."
Limited
Liability Company: "Limited Liability Company,"
"Registered Limited Liability Company," "L.L.C."
Limited
Liability Partnership: "Limited Liability Partnership,"
"Registered Limited Liability Partnership," "L.L.P."
Foreign corporations v.
Domestic corporations: A firm is considered domestic in its
home state, where it is incorporated or organized. A
corporation is foreign in all states where it is not
incorporated. Generally, to do business as a foreign
corporation the firm must submit a certificate of authority
to conduct business in a state other than its home
state.
In which state should I
incorporate my business: Many small businesses choose to
organize themselves in their home state since it is less
complicated and may be less expensive in the long run.
Businesses organized outside of their home state usually
have to go through the extra step of meeting reporting and
filing requirements in both their home state and their
organizing state.
However, many firms choose to incorporate in the state of
Delaware. Delaware corporations enjoy the benefits of
organizing in a jurisdiction with regulations very friendly
to business. In addition, the state has low organizing fees
and low annual fees, and no income taxes. The state's
business laws are highly developed and are supported by
their own separate court system. While organizing and
operating in this environment may be desirable for large
companies or firms which intend to trade stock shares on a
public exchange, smaller and more private firms may not want
to go to all this trouble. As stated above in our
foreign
corporation section, businesses organized in Delaware can
still have some reporting and tax obligations in their home
state. While
operating in such a complex environment may be desirable for
larger, more complex firms, at Proactive Management, Inc.,
our focus is to provide entrepreneurs with timely and
affordable corporate services for their small or new
businesses which may not benefit from this incorporation
option. This is why Proactive Management does not currently
offer Delaware incorporation services.
If we incorporate in one
state but conduct business in another, do we still need to
file documentation with the other state: Foreign firms "conducting
business" within a state are required to seek local
operating authority by obtaining a certificate of authority
from the state. This involves submitting a certificate of
good standing, also known as a certificate of existence,
which is issued by a business's home state
government.
What is a publication
requirement:
Some states
require that after formation documentation is filed and
accepted by the state, that the documentation must be
published in a newspaper of general circulation in the local
area of the firm's known place of business. Evidence of
publication must be delivered to the filing authority.
In Proactive
Management's service area, Arizona has a publication
requirement for new business formation.
How many people does it
take to incorporate: Just one person can fill the required
officer positions, be a shareholder, and be a director.
How many directors does
my company need: Only one director is required but all
initial directors should be listed in the articles of
incorporation submitted to state authorities.
Is there a minimum
capital requirement for starting my corporation: Yes. A corporation must issue at least
one share of ownership in order to raise funds via capital
funding. State authorities require that a corporation must
sell such share(s) in order to begin operations.
However, two
states in Proactive Management's service area have
significant minimum capital requirements for starting a
corporation. Both Texas and South Dakota require that newly
formed corporations receive a minimum of $1,000 worth of
initial capital contributions before beginning business
operations.
Does one stock
certificate represent one share of stock: No. While shareholders may have
evidence of stock ownership in the form of stock
certificates, these certificates can be issued in
denominations of any number of shares. These certificates
are formal company documents which indicate that a certain number of shares, of a
certain class, from a certain company, have been authorized
and issued.
What is a registered
agent and do I need one: This is a natural person or entity
which is authorized to transact business in a state,
required to be physically present in that state, and is
responsible for receiving service of process or official
notices addressed to the client corporation. These
provisions ensure that each company operating within a state
has a location within that state where its legal agent may
be found. This way, no firm can operate in a state and be
beyond the reach of the state government.
The registered agent must be named in various filings with
state authorities. The agent is named in the articles of
incorporation / organization, and in a certificate
of authority.
Can we get our own
registered agent: Generally, if you have a business
location in your state of incorporation, a director,
officer, or employee working at that location can serve as
your registered agent at no additional cost to you.
As a result,
registered agent services are not provided by Proactive
Management.
Tell me more about
Proactive Management: Our goal when we started in 1997 was
the same as it is today, to provide professional corporate
services to entrepreneurs organizing their small and
start-up businesses. We make the best use of your time by
offering owner/managers a quick and easy ordering
process.
How is your pricing
different:
Proactive
Management provides corporate-level service at
online
prices.
$90 + state fees gets you all the basic services you need
with no hidden charges. We charge per order, not by the
hour. This means we charge a fraction of what an attorney
charges and you save the rest. We make money by selling you
a thoughtful, reliable service, not by selling your online
profile or other personal information to marketers.
What are your "Real-time
Fees": Some
states do not have flat filing fees for processing business
documents. Such fees may vary based on the initial features
of the business, such as, the number of shares authorized,
the amount of consideration received, or the amount of
stated capital received. Rather than quote customers a flat
fee which may not even apply to their situation, "Real-time
fees" calculate estimates of state filing costs using the
same parameters used by the states themselves.
Other incorporation
services have different service levels. Why doesn't
Proactive Management: Because everything you need is already
included for just $90 + state fees. You pay for only the
additional services you want, and still get the same premium
quality service every time, no matter what.
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