Open Your FREE E-commerce Store

Additional Resources For Incorporating In The State of
[Corporations Office] [Corporate Statutes] [Other State Filings] [Filing Fees] [Name Availability] [Addresses]

Delaware INCORPORATION RESOURCES

SEE WHAT ONLINE INCORPORATION SERVICES CHARGE

Check Corporate Name

Delaware Secretary Of State - Division Of Corporation's

Delaware Incorporation FAQs

Delaware Corporate Statutes

Delaware Corporation Newsletter

Additional State Filings That You May Need To Make

>

Delaware Corporate Kit

Delaware Small Business Doument Package

OTHER ISSUES

Protecting Your Business Name

Trademark Searches

Fictitious Names

Business Resources

SITE LEGAL INFORMATION

E-Book Licensing Terms

Privacy Policy

Copyright Notice

 

 

 

 

All material copyright, 2000, DigiLaw Publishing, Inc., All Rights Reserved.

See our Copyright Notification Page.

DELAWARE E-BOOKS

Available Delaware E-Books

Delaware Corporate Kit E-Book

Delaware Small Business E-Book

Dont' Be Mislead By Other Cheap Incorporation Ofers

See How Much You Can Save Using Our E-Books

>

SAVE BIG $$$$$ WITH OUR AUTOMATED E-BOOKS

Maintaining Separate Accounts

Avoid Commingling With Personal Accounts

Commingling of your business/corporate funds with your personal funds can lead to arguments by creditors of your business that your corporation is being operated as an "alter ego." If a creditor successfully makes this argument in a court of law, a court could disregard your corporate entity and order the attachment of your personal assets for corporate liabilities and obligations.

Importance of Separate Accounts

You must set up a separate banking account for your corporation. All revenues received from the corporation's line of business must be deposited in the corporate accounts. There should be no commingling of the corporation's funds with your personal accounts. Additionally, all expenses related to the corporation's business must be paid from corporate accounts.

Customer Invoices

You should also make all of your invoices to customers payable to your corporation. This information should be clearly contained on all invoices. You should also be certain that your merchants account is set up under the corporation rather than your individual name.

Additional Funding to the Corporation

If it becomes necessary for you to place additional revenues in your corporation from your personal account in order to meet startup or ongoing corporate expenses, the nature of those payments from you to your corporation should be clearly documented. Check with our accountant to determine how those payments should be characterized. There are generally two choices of how to characterize payments from you to your corporation; (1) additional capital contributions, or (2) loans from you to your corporation. Normally, it will be beneficial to treat these additional payments as loans from you to your corporation. If this is the chosen character of these payments, you should appropriately document these payments through execution of promissory notes and perhaps security agreements.

Seek Guidance From Accountant

Remember to seek guidance from your accountant on how to characterize these payments in your particular instance. Then, you should completely document the nature of these payments through execution of appropriate documents such as promissory notes, security agreements, or additional capital contributions.

Disbursements From The Corporation

Disbursements that are made from the corporation to shareholders and others should also be appropriately characterized. There are generally three ways that these payments might be characterized; (1) as loans from the corporation to the shareholders, (2) as payment of compensations, or (3) as distributions of dividends on shareholdings. Again, it is important to consult with your accountant concerning your desired characterization of payments from the corporation to the shareholders. These choices have significant tax and other legal ramifications

How Our Small Business E-Book Can Help

Our SMALL BUSINES PACKAGE provides you with a number of documents to assist you in appropriately documenting these payments which you can use once you obtain advice from your accountant regarding the approiate nature of these payments.

>

GUIDE TO MAINTAINING YOUR CORPORATION

Overview

Regular Meetings and Corporate Actions

Seperate Corporate Accounts

Annual Reports and Filings

Contracting

Advertising and Marketing

Director Duties

ADDITIONAL DOCUMENTS Provided Totally Free Of Charge

IRS Form SS-4 To Obtain Federal Tax ID Number

IRS Form 2553 To Make Subchapter "S" Election

Other State Forms