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A corporation is a business entity authorized by the state to act as a single entity. Corporations are best for entrepreneurs who want a formal business structure with the legal right to enter contracts, protect shareholders’ assets, sue and be sued, loan money, and pay taxes. But it involves many processes. These include Corporation filing, designation of registered agent, and many more.

The legal statute of a corporation varies from one state to another. Therefore, you need to seek the guidance of an attorney before your corporation filing. Read on as Global Multi Services takes us through the types of corporations.

What is Corporation Filing?

Corporation filing is a set of legal documents that provides name, address, business purpose, representative information, and other important information about the corporation. It is mandatory for every corporation and filed by the shareholders.

How to Start A Corporation

Starting a corporation requires filing an article of incorporation by shareholders with common stock in the corporation who are also pursuing the same goal. The board of directors governs the corporation and is elected by the shareholders. The number of shares each shareholder owns determines its percentage in the company.

Types of Corporations

There are different types of corporations which includes the following:

C-Corporation

C-corporation is a business entity with unlimited numbers of shareholders. They raise capital by selling shares, making it a common entity for many large companies. These business entities are subjected to a double taxation situation. That means the shareholders are taxed individually and on the dividends received from the company.

C-corporations protect the shareholder’s liability from business debt and litigation. The shares in the corporation can easily be bought and sold. The percentage of ownership is also divided based on shares owned by the shareholder.

Closed-Corporation

A closed corporation is a private or family company where shareholders are small and closely associated with the business. The shareholder asset is protected, and the company also experiences greater flexibility in operations.

S-Corporation

S-corporation is a business entity with limited shareholders and avoids double taxation. The corporation’s income is passed directly to the shareholders without paying federal corporate taxes if it meets the requirements of a specific internal revenue code.

That means the shareholders are taxed: instead of taxing the company as a separate entity. To qualify as an S corporation, the corporation must meet specific requirements. These includes not having more than a hundred shareholders, must be a citizen, not having partnerships, and many more.

Non-Profit Corporation

A non-profit corporation is a business entity established for religious, educational, charitable, or political purposes. They often provide public benefit rather than personal profit and do not pay federal and state taxes.

The members of this corporation cannot distribute profits but are allowed to pay wages or compensation for service rendered. Requirements for establishing a non-profit corporation vary from one state to another.

B-Corporation

B-corporation is structured to benefit society by meeting the highest standards in legal accountability, public transparency, social and environmental performance. The corporation redefines success in business by providing a more sustainable and inclusive economy. These reduce poverty, inequality while promoting a healthier environment.


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The first decision to make before starting a new business is to choose an entity depending on how you want to run your business. Generally, most entrepreneurs either register as a corporation or process LLC Registration. Limited liability companies protect personal assets, provide ease of operation and tax flexibility. Read on as Global Multi Services takes us through what you need to know about LLC Registration.

WHAT IS A LIMITED LIABILITY COMPANY?

Limited Liability Company is a business entity where the members are not liable for the company’s debt or liabilities. It combines the features of a corporation, partnership, or sole proprietorship. The members file taxes, listing the profits and losses of the business on their tax returns.

LLC Registration requirements vary from one state to another, and anyone can be a member of the business entity. These include foreigners, other limited liability companies, corporations, and many more. LLC provides a more formal partnership, more flexibility, and protection. It is also easy to establish when compared to other entities.

HOW TO ESTABLISH A LIMITED LIABILITY COMPANY

Limited Liability Company is created by choosing a name, designating a registered agent, and filing articles of organization in your base state. The articles of organization contain the name and address of all the members, business statement of purpose in the base state, the right, duties, and other obligations of each member of the limited liability company.

ADVANTAGES Of LLC REGISTRATION

Tax Flexibility

Limited liability companies’ members choose how they want to be taxed. They are taxed like a corporation, a partnership, or a sole proprietorship. But most tax option s similar to a sole proprietorship. That means most of them file taxes listing the profits and losses on their tax returns. Many limited liability companies do not pay corporate tax. These help them to avoid double taxation.

Simple To Set Up

Limited liability companies are easy to set up compared to other business entities. They are generally under state law, and their requirements depend on the state it is being established. They also take less paperwork and are simple to manage. While some states require filing articles of organization with the Secretary of State in person and drafting of Operating Agreements, other states allow online filling.

DISADVANTAGES OF LLC REGISTRATION

Self-Employment Tax

Limited liability companies pay self-employment tax, and these taxes can sometimes be more than taxes paid by a corporation. The self-employment tax includes Social Security tax, medical tax, and many more.

Automatic Dissolution

Other members of a limited liability company’s liability are protected if one of them fails to meet its legal obligations. However, the automatic dissolution of the limited liability company gives creditors leverage to go after members. Death or withdrawal of a member without any succession can affect their operating agreement and structure. These can also lead to automatic dissolution.

Different State Law

The difference in state requirements and laws governing the establishment and operations of a limited liability company can affect its operation in multiple states. It can also lead to additional documentation and paperwork across different states.


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What makes a trucking company successful in the United States? The trucking industry can be an exceptional opportunity for those with an entrepreneurial spirit who desire to run a trucking company. But the industry is competitive and requires obtaining many licenses and permit such as UCR Permit, MC Authority, and others.

Your success also depends on doing what satisfies your clients. These include handling and delivering freight in perfect condition, innovation, on-time delivery, safety practices, state-of-the-art technology, and many more.

Freight mishandling, breaching agreements, or delays can lead to poor performance and customer dissatisfaction.  Whether your company is a start-up, established, or growing, here are crucial things that will increase your chances to succeed in the trucking industry.

BUILD CUSTOMER TRUST

Building customer trust is one of the best ways to stay ahead of your competitors in the trucking industry. Reliability and building trust means keeping a promise and satisfying your customers. Many new trucking companies often bid a low price to attract more customers but fail to meet their needs. Some do not have the resources, and others do not consider every factor before accepting and signing proposals. These result in unfulfilled delivery, unhappy client, and a bad reputation.

GET YOUR OPERATING AUTHORITIES

Trucking companies need to be aware of the rules and regulations guiding the trucking industry at the federal and state levels. They must obtain interstate operating authority to operate outside their base state, United States Department of Transportation Number, and comply with the federal and state fuel use tax and vehicle licensing.  There are also specific rules and regulations for hauling different kinds of freight in every state. So, trucking companies must obtain all the necessary operating authority to stay compliant.

ON-TIME DELIVERY

Late deliveries can be very problematic for many clients. Not having the smallest component on hand can freeze an entire production or marketing line. Therefore, trucking companies must commit to on-time deliveries. The right equipment to comply with freight hauling must be available before accepting to haul the freight. These allow trucking companies to have loyal customers who stick with them always.

OBTAIN UCR PERMIT

The UCR Permit is a federally-mandated program for trucking companies traveling interstate and international lines. Trucking companies must complete their Unified Carrier Registration and pay an annual fee in their base state according to the total number of vehicles in their fleet. Trucking companies also need IRP, IFTA, Motor Carrier Permit to operate interstate. Let Global Multi Services help you obtain your UCR Permit and other trucking permits to stay in compliance in the trucking industry.

PRIORITIZE SAFETY

The safety of freight and truck drivers is the most crucial element in the trucking industry.  Reliability and on-time deliveries are often unachievable when these are compromised. Poorly maintained equipment and improper operation of trucks can have disastrous results on customer satisfaction. Sudden breakdown, injuries, and damage caused by negligence can permanently affect the company’s reputation. Therefore, tracking your safety records and drivers’ performance continuously can minimize the potential for an accident.