Incorporation FAQ: Frequently Asked Questions about Corporations

People ask a handful of common questions when they’re considering the general subject of incorporating a business or, more specifically, when they’re considering purchasing a do-it-yourself incorporation kit or using an incorporation service. Here are the questions and answers we seem to give again and again:

Background Information:
What is a corporation?
Is a limited liability company a corporation?
What is a C corporation?
What is an S corporation?
What is a disqualified S corporation?
What is a close, or closed, corporation?
What is a professional service corporation?
Should you use an online incorporation service?
What are the advantages of an S corporation?
LLC versus corporation: Which is the better option?
Does incorporating in Nevada save state income taxes?
Which is the best state to incorporate in?

Owning and Operating a Corporation:
When is a business too small for incorporation?
How does someone incorporate a new business?
How does someone incorporate an existing business?
What is a registered agent?
How does a corporation pay its shareholders?
How does one dissolve, cancel or stop a corporation?
Which tax returns are required for the new small business corporation?
What sort of accounting system does a small corporation need?