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This article possibly contains original research. Incorporation is the formation of a new corporation. First National Bank of Boston v. Specific incorporation requirements in the United States differ on a state by state basis. However, there are common pieces of information that states require to be included in the certificate of incorporation. A business purpose describes the incorporated tasks a company has to do or provide.
The purpose can be general, indicating that the budding company has been formed to carry out “all lawful business” in the region. The chosen name should be followed with a corporate identifier such as “Corp. A preliminary name availability search is advisable prior to the submission of the Articles of Incorporation. In the case of online incorporation, the state will have the final say with regards to the name chosen for the company. The name shouldn’t deceive or mislead consumers. Registered agents are responsible for receiving all legal and tax documentation on behalf of the corporation.
Share per value refers to the stated minimum value and generally doesn’t correspond to the actual share value. In reality, the value of a share is based on its fair market value or the amount a buyer is willing to pay. It is mandatory for every corporation to have stock. There are a number of legal benefits that come with incorporation. One significant legal benefit is the protection of personal assets against the claims of creditors and lawsuits. In the United States, corporations can sometimes be taxed at a lower rate than individuals. There are no limits on the amount of losses a corporation may carry forward to subsequent tax years.