In 2007, Safe Shield completed a comprehensive compliance solution program to keep businesses and nonprofits compliant with corporate requirements. Our mission is to ensure that no business, regardless of size or tenure, slips into bad standing with the government, or its shareholders, simply because the owners are too busy to keep up with the paperwork.
At Safe Shield, we not only ensure that your business maintains compliance with corporate requirements, we can also assist you in corporate formation. We know that in order for businesses to stay compliant, they must first be formed the right way. Today’s businesses are eligible for legal liability protection. This type of protection separates the business from the business owner(s), ensuring all liabilities and obligations are the responsibility of the business entity and not the business owner(s).
A corporation is one of the most popular types of business entities. It is an independent legal entity that is separate from the corporation’s owners, this means that the corporation’s owners are not legally responsible for the corporation’s debts. Tax law recognizes a corporation as a legal “person” that has many of the rights that a living individual has like, the ability to pay taxes, enter into contracts, and incur debt.
A corporation provides an assortment of advantages to its owner(s). If properly formed and managed, corporations limit the liability of their shareholders. Even if the corporation is sued, shareholders only risk losing his or her investment in the stock. The shareholder’s own personal assets are not in jeopardy.
The profit and loss does not affect the owners of the corporation’s personal tax returns unless the owner is being paid by the corporation. Therefore if you use the corporation’s profits to reinvest into the business, as opposed to taking a salary, then your personal taxes will not be affected.
Corporations are built to achieve quick growth through creating capital by selling equity to investors. Your corporation has the potential to grow exponentially and to achieve maximum profits through public trade on the stock exchange.
Establishing your business as a corporation can be a very profitable business decision. Deciding which entity is best for your business depends on your business’ specific needs and requirements such as: the nature of the business, tax requirements and consequences, management control, and other factors. If you would like to know if your business is eligible to become a corporation, the experts at Safe Shield are here to help you make an informed decision about entity formation. We will design a plan that will not only jump-start your corporation, but will keep your business in compliance with corporate standards.
To find out more about forming a corporation, we encourage you to review our Business Formation System Page, or schedule a phone call with one of our experts.