INCORPORATION SERVICES

An Overview of Incorporation Types

Separate Legal Entity Status
A corporation is a separate legal entity existing under authority granted by state law. It has its own identity separate and apart from its shareholders/owners.

Broad Range of Powers
As a separate legal entity, a corporation has the power to act in any way permitted by law and by its own corporate charter. For example, a corporation can enter into contracts, buy and sell both real and personal property, sue and be sued, and can even be responsible for breaking the law (i.e. committing a crime).

Small Claims Court
In most jurisdictions, any officer, director or employee can appear in small claims court on behalf of the corporation.

Separate Liability for Corporate Debts
As a separate legal entity, a corporation is responsible for its own debts. Normally, shareholders, directors, and officers are not responsible for corporate liabilities. If the corporation suffers losses, the corporation itself must bear those losses to the extent of its own resources, and not the personal assets of the individual shareholders. However, shareholders indirectly bear these losses by a decline in the value of the stock they hold in the corporation.

Note that shareholders, directors, and/or officers may be held liable for the debts of the corporation where the court imposes "alter-ego liability" or where the individual has personally guaranteed the corporate debt.

Perpetual Duration
A corporation is capable of continuing indefinitely. Its existence is not affected by the death or incapacity of shareholders, directors or officers of the corporation.

Duration of Corporation Compared to LLC
An LLC has a limited existence. Absent a contrary agreement, a limited liability company (LLC) is dissolved upon the death, withdrawal, or bankruptcy of a member unless the business is continued by unanimous vote of the remaining members. Although the operating agreement can be drafted to avoid such a result, the life of the LLC is still limited to the termination date in the Articles of Organization.

Eva Smith and Associates is a professional accountant firm assisting clients with accounting, tax planning and tax preparation needs.  We are located within Alameda County in Hayward, California.  The majority of our clientele is located in the East Bay within Hayward, Castro Valley, San Leandro, San Lorenzo, Oakland, Union City and Fremont but everyone is welcome to utilize our services.  Our services include, but are not limited to: Tax Accountant, Tax Preparer, Enrolled Agent, CPA, Corporate Tax Preparation, Individual Tax Preparation, Corporate and Individual Tax Filings, Tax Planning, Business Consulting, Retirement Planning, QuickBooks Training, Bookkeeping, Payroll, Audit Representation, IRS Problem Resolution, Business Formation, Small Business Start-up Services and Incorporation Services (i.e. C-corporation, S-corporation, LLC, LLP, partnerships, etc.).