Incorporating in America

INCORPORATING IN AMERICA: NUMBERS AND TRENDS C-CORPORATION • A legal structure that businesses can choose to limit owners' legal and financial liabilities • Considered as a separate entity from its owners 1. New York, NY 2. San Diego, CA 3. Irvine, CA 4. Los Angeles, CA 5. Fremont, CA 6. Huntington Beach, CA 7. Valencia, CA 8. Beverly Hills, CA 9. Carlsbad, CA 10. Moorstown, NJ 606 340 312 307 262 183 131 122 114 110 0.22 0.12 0.11 0.11 0.1 0.07 0.05 0.04 0.04 0.04 0.56 0.51 0.51 0.43 0.3 0.22 0.2 0.19 0.18 TOTAL 2757 LIMITED LIABILITY COMPANY 2. New York, NY 1. Los Angeles, CA 3. San Francisco, CA 6. Newport Beach, CA 7. San Diego, CA 8. Plano, TX 10. Allen, TX 4. Alpharetta, GA 5. Atlanta, GA 9. Suwanee, GA 222 202 131 121 121 100 99 0.14 0.13 0.08 0.08 0.08 0.53 0.06 0.06 0.06 0.06 0,4 0.05 0.97 0.88 0.57 0.53 0.43 0.43 0.4 0.37 TOTAL 1605 Count % of Base B-CORPORATION • A new type of corporation • Uses the power of business to solve social and environmental problems B Corporations address two critical problems: • Current corporate law makes it difficult for businesses to take employee, community, and environmental interests into consideration when making decisions • The lack of transparent standards makes it difficult to tell the difference between a 'good company' and just good marketing -To address these issues, B Corporations' legal structure expands corporate accountability so they are required to make decisions that are good for society, not just their shareholders TOP 5 MOST ENTREPRENEURIAL STATES Arizona (2011 startup rate: 520 per 100,000 adults) • Business and property taxes are low • Labor pool is highly educated California (2011 startup rate: 440 per 100,000 adults) • Silicon Valley continues to be the launch pad • Large population of immigrants is creating small businesses to earn a living Texas (2011 startup rate: 440 per 100,000 adults) • No personal or corporate income tax • Healthcare and professional and technical services are booming Colorado (2011 startup rate: 420 per 100,000 adults) Business owners enjoy: • State-funded training programs • Affordable cost of living • Low workers' compensation rates Alaska (2011 startup rate: 410 per 100,000 adults) • Niche business (e.g. small boat builders and repair shops) attract entrepreneurs • Business taxes are low and no state income or sales tax BUSINESS FORMATION BY TYPE SOLE PROPRIETORSHIP Business owned and managed by one individual • Individual who owns the business and is personally responsible for its debts TAXX Has complete control and No corporate tax payments decision-making power over the business Responsibilities and business Investors won't usually invest in sole proprietorships decisions fall on the shoulders of the sole proprietor Home Landscaper Computer Repair Services Bookkeeping Financial Healthcare Planners 3+4-7 Catering Company Freelance Writer Tutoring Home Virtual Assistant Cleaning Service GENERAL PARTNERSHIP • Business organization formed with 2 or more individuals • Partners share in the management and in the profits • Each partner is liable for all business debts and bears responsibility for the actions of the other partners Partnership may Partners may be benefit from the able to contribute combination of more funds and complementary skills of two or brainstorming more people You have to consult Jointly and individually liable for the actions of the other partners Disagreements your partner and negotiate more as can occur you cannot make decisions by yourself Lawyers Accountants LIMITED LIABILITY COMPANY • New and flexible business organization of one or more owners • Offers the advantages of liability protection with the simplicity of a partnership • Partners are not liable for business debts Can be set up with just one natural person involved Can elect to be No requirement of an annual general meeting for shareholders taxed as a sole proprietor More than 35% of losses can be 50% or more of the capital and profit interests are sold or allocated to exchanged within a 12-month period nonmanagers Medical Engineers Architects Accountants Lawyers practitioners CORPORATION • Pays its own taxes and shareholders pay tax on their dividends Best entity for eventual public companies • Can raise capital through the sale of securities and can transfer ownership through the transfer of securities • Require periodic filings with the state and also require annual fees It attracts more It can exist with continuity Shares of ownership are transferable The corporation pays its own tax investors It may result to Incorporation is costly Corporations are highly regulated double taxation SWOP Retail Oil and Gas Financial Services Conglomerate Automotive Banking Sources: http://money.cnn.com/galleries/2012/smallbusiness/1206/gallery.best-places-entrepreneurs/2.html http://www.allbusiness.com/business-planning/business-structures-sole-proprietorships/2512-1.html#axzzlyVPz6vl1 http://www.tulsascore.org/organization.html http://www.how-to-start-a-business-guide.com/partnership-advantages.html http://www.residual-rewards.com/llc-advantages-disadvantages.html http://businesstips.ph/advantages-and-disadvantages-of-forming-a-corporation http://smallbusiness.chron.com/10-examples-sole-proprietors-32858.html http://definitions.uslegal.com/p/partnerships/ http://money.cnn.com/magazines/fortune/fortune500/2011/index.html http://smallbusiness.chron.com/types-industries-allowed-llc-17237.html http://www.bcorporation.net/about http://www.bcorporation.net/why http://www.investopedia.com/terms/c/c-corporation.asp#axzz20OMNvm1P http://www.businessdictionary.com/definition/C-Corporation-C-Corp.html Brought to you by: MyCorporation entrepreneurs welcome BUSINESS BY INDUSTRY TYPE DISADVANTAGES ADVANTAGES Los Angeles, CA New York, NY New York, NY San Diego, CA San Francisco, CA Alpharetta, GA Atlanta, GA %24 Newport Beach, CA San Diego, CA Plano, TX Suwanee, GA Allen, TX