Why incorporate in the US? Accessing one of the wealthiest and fastest growing economies in the world requires a presence in the United States. Setting up a US corporation allows one from outside the United States to take advantage of and tap into this economy. Not setting up a US corporation limits your ability to grow your business in the United States and precludes you from taking full advantage of the US economy. Top

Why Charlotte, NC? Charlotte is booming with economic development and commercial activity. Some facts regarding Charlotte: It has more headquartered fortune 500 companies than all but five other U.S. cities - two of these eight companies have relocated to Charlotte in recent years. In addition many major national and international companies have setup subsidiaries in Charlotte. The market access is superb. Although the population of the city itself is mid-size (approximately 650K people) the urban area is the fifth largest in the nation with a population of over 7.5 million people within a 100 mile radius. By contrast Miami has a population of only 5.9 million people and Memphis has a population of 2.6 million in the same radius. Charlotte has emerged as the powerhouse banking city in the United States managing $1.8 trillion in assets, ranking only second behind New York City (Atlanta has assets of $128 billion and Miami has assets of $0.8 billion). Charlotte is major manufacturing force. The region has over 2,200 manufacturers that employ more than 92,000 workers with an annual payroll of approximately $2 billion. Every major manufacturing segment is represented. Over 473 foreign owned companies have Charlotte facilities representing half of all foreign companies in North Carolina. Charlotte is a port of entry with fully staffed US Customs and Immigration and Naturalization offices. The Charlotte Foreign Trade Zone and an inland port facility are located here. Charlotte has an excellent highway network as well a modern and expanded international airport. Eight major airlines offer direct and non-stop daily flights to 168 cities, including non-stop flights to Munich, London, Toronto, Mexico and the Caribbean. It is also the center for the country’s largest consolidated rail system. All of these features make Charlotte, NC an ideal location to incorporate and launch your business. Top

What is a C corporation? The C-Corporation designation simply refers to a state-formed, general for profit corporation. The C is simply referring to the fact that the corporation is taxed under subchapter C of the Internal Revenue Code of 1986. C-Corporations are a separate legal entity and as such afford the owners with limited liability protection. Simply put it helps shield the owners (shareholders) personal assets and assets from other corporations from corporate debts and law suits that may be brought against the corporation. Top

What is an S corporation? Like the C-Corporation the S-Corporation designation simply refers to a state-formed, general for profit corporation. The S is simply referring to the fact that the corporation is taxed under subchapter S of the Internal Revenue Code of 1986. The income and thus taxes for the S-Corporation are treated very differently. The S-corporation is a pass through entity whereby the income of the corporation flows through the corporation directly to the owners’ personal income tax return. Owners of S-Corporations have to be US citizens, estates, charitable organizations, employee stock ownership plans and certain trusts as shareholders. Additionally they can issue only one class of stock. Top

What are Articles of Incorporation? The articles of incorporation simply declare that an organization or group become a corporation. The document spells out a minimal amount of information related to the corporation. This information is required by the laws of the state in which the corporation is formed. Top

What is a Registered Agent? The duty of the Registered Agent is to forward any notice, process or demand that is served on the registered agent, often by a deputy sheriff, to your corporation at its last known address. The registered agent must have an address that is identical with the registered office. Top

Can I serve as Director and fill all of the corporate office positions or do I have to find people to fill these rolls? There is no reason that as a closely held company that you cannot fill the roles of the Director and corporate officers and also be the sole shareholder of the company. Top

What is an EIN number? EIN is the Employer Identification Number and is used to identify the tax accounts of employers. To operate as a corporation you must have an EIN number. Top

Do I require other numbers for payroll tax withholding? In addition to the EIN number you will require a state withholding number and an ESC number (Employee Security Commission). We will apply for all of these numbers when we setup your corporation. Top

What does a corporation have to file on an annual basis? On an annual basis the C-Corporation has to file corporate tax returns with the federal government and an annual report with the state government and will have to pay a corporate tax on any profits. Top

Are corporate minutes required? Minutes, resolutions and bylaws provide your company with the documentation required that demonstrates legitimacy as a business and thus a separate legal entity from the owners. Failure to comply and not have a record of the minutes and other important decisions may result in a piercing of the corporate veil. If the corporate veil is pierced the owners do not have the limited liability protection of the corporation and the personal assets of the owners are at risk. Top

Testing Question? Testing answers. Top