A new business venture, like a new house, starts with a solid foundation. When you begin planning a new enterprise, the advice of trusted Florida corporate lawyer ensures that you do not miss critical steps in the process.
The all-important first step of establishing a business begins by defining a clear separation of business and personal affairs through establishing a legal entity, such as a corporation or a limited liability company, to protect your own assets from your business’ liabilities.
Below you will find answers to the most commonly asked questions when incorporating.
Are my personal assets protected simply by incorporating?
The short answer is “no.” One of our areas of practice involves what is called “piercing the corporate veil.” What that means is that we go after the individual owners of a corporation if there has been something concerning the corporate form that they have failed to maintain. The “corporate veil” is that invisible legal screen that protects your personal assets from the liabilities of the corporation. That legal screen is only effective when you have taken the right legal steps to ensure its continuation.
Should I Form a Delaware or Nevada Corporation?
There has been a great deal of myths all over the internet promoting Delaware Corporations as essentially tax-free corporations to conduct business. This is patently false as any U.S. sourced-income will be taxed by the federal government. Also, a great deal of advertising and salesmanship goes toward the promotion of “Nevada Corporation” supposedly because “the IRS will not find you!” To date, we have been unable to find any benefit to doing this over simply incorporating here in Florida. If anything, it is more expensive than simply incorporating in Florida if your business is here.
Delaware is suited for large corporations that have numerous shareholders and want to keep a management-friendly court system on their side. If you have less than 100 shareholders, and do not plan to “go public” by selling shares on the NYSE on Wall Street within the year, a Delaware corporation will be a burden.