ForumsInternet/eCommerce

Mochipa,

Since your have recieved your EIN, your next step is to regiister you company with the state of Florida. This will establish you a legit corporation within the state. The purpose of this is when you are conducting business and person or another company can search to see that you are a real company. In addition, you should never comingle funds. Meaning your personal checking account is for your personal expensese. As a corporation you should open a business checking account. I would suggest three checking accounts. One for general expenses, the second as a payroll account, and the third as a saving acccount. Any bank you go to open a business account will required that you have your article of incorporation, and those are registered with the state you are incoporated in. One other things you should know, by establishing a S-Corp you are required to give yourself a paycheck after a certian sales volume. But I would suggest that you giver yourself a paycheck nonetheless, so that you pay something in Social Secruity and Medicare. If you have any questions please do not hestitate to contact me. Also if you need to establish credit in your company name. I have a pamphlet from my experience. It tells you everything you need to do to establish credit in corporation name. I had to find this out the hard way. I hope I have helped you. www.kallp.co.cc or email me at jair@kallp.co.cc

It appears that you are asking jad_cpa for an answer, but if it's okay, I'll offer a response.

The number of shares you create initially is up to you, and really depends on how you expect to use them down the road -- for instance if you were anticipating a round of VC funding or an IPO for your company in the future, you'd probably want to create a lot (like a million or ten million, but you'd have probably started with a C Corp if you were planning that). If you anticipate that the company will always remain closely held, then you will need considerably less.

I think Florida requires documentary stamps on stock in proportion to its par value. Each share of stock you create will have an initial par value equal to the total amount of your (stockholder's) initial financial contribution divided by the total number of shares you issue (so if you contributed $8,000 to launch the firm and issued a thousand shares, their initial par value would be $8 a share). In Florida, I think you pay a documentary stamp tax of $0.35 per $100 par value (so with 1,000 at $8 each, you'd pay $28). For that reason, most attorneys advise that you issue no more shares than you'll really need (many recommend 1,000 for a closely held S Corp) and value them as low as possible initially to reduce the tax bite.

You'll notice that I wrote "I think" a few times (I'm not in Florida, but had a business partner there -- so I have some knowledge). Anyway, I'd suggest that you run all this by an attorney or an accountant to be sure -- but at least maybe my response will help you ask the right questions. Hope so. Best wishes.

Hi, to be sure you make the right decision and the legal decision you may want to consult with professionals that will lead you in the right directions and answer your questions legally and directly. Go to www.smallbiztoolbox.info and click on the watch video link to give you more info.

Good Luck!