Incorporation Questions and Answers
Q     What kind of savings are we talking about?
A     For the standard C-Corp 15 percent on the first 50k and much of that can disappear in deductions? (See Double Tax and Eliminate Double Tax)

Q     Do I need a Registered Agent?
A     If you are going to live in another state, then yes.

Q     Does the Incorporation need a Federal Employer Identification Number?
A     Yes, to file with the IRS and to take advantage of offers from banking institutions.

Q     Is the issuing of Shares required?
A     Yes. By definition a Corporation is owned by its Shareholders, therefore if the shares are not issued then nobody owns the Corporation. Remember that the state of Florida permits Bearer Share Certificates for its Incorporations and who ever has possession of the certificate owns the share and the state of Florida does not keep record of who owns what.

Q     What is the difference between an LLC and a regular Corporations Management?
A     An LLC is managed by one or more of its members, the Corporation is managed by Officers appointed by the Board of Directors

Q     How is a C-Corporation Double Taxed?
A     A C-Corp is taxed on its income as though it was an individual then taxed again when it disperses dividends and paychecks. If you live in a state that has state income tax, that double tax could turn into quadruple taxation. Remember that Florida does not have state income, corporate, franchise, or shares taxes. Some of the corporate level income can be offset by deductions, lowering that part of the tax burden.

Q     How does a S-Corp avoid the double tax?
A     The S-Corp spreads the taxes to the shareholders on dividend dispersion and through payroll. If there is no dividend dispersion, no tax is paid on the moneys held by the Corporation.

Q     How is a LLC taxed?
A     The IRS sees LLCs as partnerships for tax purposes and the tax burden is divided per the ownership agreement and passed through to the members.