Firstly, the corporation is required to file Articles of Incorporation with the state it is registering in. Then, after incorporation, the company must adopt a set of By-laws. Temporary officers and directors do this during their initial meeting. Finally, after the By-Laws have been created and accepted, a stock has to be issued with stock-subscription agreements.

After issuing the stock, a shareholder meeting must occur where the shareholders vote on who will be accepted as the officers and directors of the corporation. To the average person, these procedures seem foreign and complicated; however, they are pretty straightforward, and we give you the tools you need to perform these functions efficiently.

The importance of incorporating cannot be overstated. Incorporating gives your business the legal shield it needs to protect itself from lawsuits. This protection comes in the form of limited liability, which means that your personal assets are protected from any losses arising from litigation. Limited liability also allows you to carry on with your business without fear of financial ruin.

Additionally, incorporation can help you attract investors and partners, as well as take advantage of tax breaks and other benefits available to businesses operating in a corporate setting.

The C corporation is the standard (or default) corporation under IRS rules.  The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages.

Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.  C corporations are taxed under Subchapter C while S corporations are taxed under Subchapter S. To elect S corporation status when forming a corporation, Form 2553 must be filed with the IRS and all S corporation guidelines met.

Attachable assets are a reward for successfully securing a legal judgment against a firm. Anyone with significant accumulated assets is more likely to be sued over a dispute than someone with little or no exposed assets. Even families with modest assets may have a home, savings, personal property they expect to utilize for their family security are at risk of attachment. Your strategic information, commercially sensitive data and intangible assets (such as intellectual property) are also valuable - and therefore vulnerable to a range of threats.

Assets become attachable if they are titled (registered) in the name of the defendant to a legal complaint. The judge "attaches" a lien to the title of the property to recompense the plaintiff for damages awarded by the court. If the defendant fails to remit the assessed amount of money to the plaintiff, the awarded property is court re-titled to the plaintiff.

Corporations issue shares of stock to their owners, who are called shareholders. Corporate shares are easy to transfer from one owner to another, and therefore a corporation can be a good choice for a business that anticipates having outside investors or making a public stock offering.

The owners of an LLC are called "members," and instead of shares, each member owns a designated percentage of the company, sometimes called a "membership interest."

Membership in an LLC may be more difficult to transfer than shares in a corporation. An LLC's operating agreement will typically specify whether and how membership interests can be transferred.

In some states, if a member leaves an LLC and the operating agreement does not specify otherwise, the LLC must be dissolved.