How To Form Your Own Corporation (legal Survival Guides)

SPHINX LEGAL TAKING THE MYSTERY OUT OF THE LAW ™ Written by Lawyers A Simple English Explanation of the Law Ready-to-Use Forms with Detailed Instructions “Easy to understand guides—an excellent source for readers.” —Library Journal how to Form Your Own Corporation ✔ Explanations of Minutes and Bylaws ✔ State-by-State Incorporation Laws ✔ Information About S Corporations ✔ Start-Up Procedures ✔ Day-to-Day Operating Procedures W. Kelsea Eckert Arthur Sartorius, III Mark Warda Attorneys at Law 4th edition How to Form Your Own Corporation Fourth Edition W. Kelsea Eckert Arthur Sartorius, III Mark Warda Attorneys at Law SPHINX PUBLISHING ® AN IMPRINT OF SOURCEBOOKS, INC.® NAPERVILLE, ILLINOIS www.SphinxLegal.com Copyright © 2003 by W. Kelsea Eckert, Arthur Sartorius, III, and Mark Warda Cover and internal design © 2003 by Sourcebooks, Inc.® All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems—except in the case of brief quotations embodied in critical articles or reviews—without permission in writing from its publisher, Sourcebooks, Inc.® Purchasers of the book are granted a license to use the forms contained herein for their own personal use. No claim of copyright is made in any government form reproduced herein. Fourth Edition: 2003 Fourth Printing: May, 2004 Published by: Sphinx® Publishing, An Imprint of Sourcebooks, Inc.® Naperville Office P.O. Box 4410 Naperville, Illinois 60567-4410 630-961-3900 Fax: 630-961-2168 www.sourcebooks.com www.SphinxLegal.com This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations This product is not a substitute for legal advice. Disclaimer required by Texas statutes. Library of Congress Cataloging-in-Publication Data Eckert, W. Kelsea. How to form your own corporation / by W. Kelsea Eckert, Arthur Sartorius III, and Mark Warda.-- 4th ed. p. cm. Includes index. ISBN 1-57248-345-8 1. Corporation law--United States--Popular works. 2. Corporation law--United States--Forms. I. Sartorius, Arthur G. II. Warda, Mark. III. Title. KF1414.6.E29 2003 346.73'066--dc21 2002155732 Printed and bound in the United States of America. VHG — 10 9 8 7 6 5 4 Contents Using Self-Help Law Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Chapter 1: What a Corporation Is. . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 2: Deciding to Incorporate . . . . . . . . . . . . . . . . . . . . . . . . 5 Advantages Disadvantages Corporations Compared to LLCs Chapter 3: Choosing the Best Type of Corporation . . . . . . . . . 11 Domestic Corporation or Foreign Corporation S-Corporation or C-Corporation Inc. or P.A./P.C. Non