Apr 21st, 2010 Posted in 2010-4 | one comment »
Eddie Tobey asked:
When you are starting a new business in Florida, you can set it up under sole proprietorship, a cooperative, or as a corporation. If you go with incorporating, it is the process of forming a new corporation, which can be set up as a business, a non-profit organization, or a new government of a new city or town.
Setting up your business as a corporation in Florida reaps several legal benefits.
A corporation is separate from your personal assets, meaning in the event of a lawsuit or filing for bankruptcy, creditors cannot go after you and claim your personal assets as compensation for the debt of your corporation. Your stockholders, directors, and officers are also protected from being held liable for the debts and obligations of the corporation. The maximum amount you or the other investors can lose is the amount you invested in the company and nothing more.
The corporation is also protected from the investor?s losses as well. In the event that a stockholder incurs debt or goes bankrupt, corporate properties cannot be seized as compensation. Only his shares can be used as compensation.
In a corporation, your shares of ownership can be transferred to others either as a whole or partially. It is also easier for you to set up a retirement fund under a corporation.
Under a corporation, your tax rate is lower than it would be for you as an individual, and you are legally allowed to own shares in other companies and receive corporate dividends of up to 80% tax-free.
If your corporation is in a financial bind, it is easier for you to raise funds if you sell stocks and open it to the market.
A corporation can last for a very long time. Even with the changing of stockholders, the corporation can continue to exist.
A corporation has its own credit line. Even if the stockholders? or personnel?s credit records are not so wonderful, the corporation can retain a clean slate.
the home buyer
Tags: Dividends, filing for bankruptcy, Non Profit Organization
Jul 30th, 2009 Posted in finance | no comment »
by Michael Geoffrey
Before you decide on filing for bankruptcy, you need to weigh the pros and cons so that you can take the right decision and choose the right option. Among the leading reasons why you need to be filing for bankruptcy is that it offers you the chance to make a fresh start in life, because with so many debts to contend with, your financial position could be greatly crippled and the emotional stress too would be unbearable. Coping with mounting debts is never very easy and when you cannot pay them off, the situation becomes even worse.
Buying Time
When your debts have stacked up so high that it seems that you will never realistically be able to pay them off, your only choice may be to file for bankruptcy. This is one way to eventually get yourself to be free of debt.
And, once you are sure about filing for bankruptcy, you will have bought you some time from your creditors who will not be able to bother you with reminders to pay up, and in some cases, may even mean having to pay less, while some companies will even help you overcome all of your financial woes.
Though these are the pros of filing for bankruptcy, there is a negative side to it as well and what was once easy when it came to filing for bankruptcy, has now become much more complicated because now your entire life history is scrutinized under a microscope and it can be quite unnerving as well because of the level of intrusion into your personal life that is caused whenever you are filing for bankruptcy.
Other negative aspects to filing for bankruptcy include high interest rates on loans that you may get in order to pay off your debt, and this is especially true when youre past credit history shows that you cannot pay off your debts.
Going through the process of filing for bankruptcy also tends to mean hiring a bankruptcy lawyer to assist you. That is another additional cost that you would not have to deal with if you were not filing.
Some of the financial problems that can and do occur as a result of filing bankruptcy can have very serious and very long lasting effects. For that reason, it is very important for you to think seriously about your choice to file or not instead of just making a rash decision.
About the Author:
Before you decide to
cut up credit cards to help you get out of debt, you’d better understand how it can affect your credit score. Find out what you’d better know first on the Debt Smackdown website at http://www.debtsmackdown.com
Tags: bankrupt, bankruptcy, chapter 11, chapter 13, credit management, debt consolidation, debt management, filing for bankruptcy, finance, personal finance
