A For-Profit Corporation is a business entity which is owned by shareholders and is in business to pursue profits. A For-Profit Corporation has a fiduciary duty to act in the best interests of itself, and maximize profits for its shareholders. A For-Profit Corporation is usually run by a board of directors, and managed by corporate officers elected by the board of directors. Corporations are taxed as a seperate legal entity from their shareholders, and shareholders are generally not personally liable for any acts committed by the corporation.
In order to form a For-Profit Corporation in Ohio, a promoter of the corporation must file its Initial Articles of Incorporation and Statutory Agent for Service with the Ohio Secretary of State, pay all necessary fees.
Starting a For-Profit Corporation can have numerous tax consequences, accounting requirements, and other compliance issues which could be a hassle to navigate. If you are considering incorporating your business, you should not hesitate to seek a competent business attorney.
Non-Profit Corporations (501(c)(3))
A Non-Profit Corporation does not seek any profit, does not pay any taxes as it works for the welfare of the society and reinvests any surpluses earned back to the business. Non-Profit organizations are often called 501(c)(3) organizations, due to the IRS code section which establishes and governs their existence. Charities and other organizations dedicated to social work are often organized as Non-Profit Corporations.
Non-Profit Corporations are strictly regulated and scrutinized due to their preferential tax treatment. As a result, if you are considering incorporating your organization as a Non-Profit Corporation you should seek legal counsel from a competent business lawyer.
Limited Liability Company (LLC)
A Limited Liability Company is a hybrid business entity which provides pass-through taxation like a sole-proprietorship, with the limited liability of a corporation.
LLCs are usually a great option to start a business due to the ability to sell membership stakes to raise capital, relatively simple taxation treatment, and protection from personal liability.
In order to form an LLC in Ohio, a promoter of the LLC must file Articles of Organization and a Statutory Agent for Service of Process with the Ohio Secretary of State, and pay the appropriate fees.
Thinking of Incorporating Your Business?
Contact an Experienced and Competent Business Attorney in Ohio Today!