A stock's par value, also known as its face value, is the minimum price at which a company can issue and sell its shares. It is typically set when the company is first incorporated and is listed in the company's articles of incorporation.

In the past, par value had more significance than it does today. Originally, par value represented the minimum amount that a shareholder had to pay for a share of stock, and if the company went bankrupt, shareholders would be liable for the par value of their shares.

However, in modern times, par value is largely a technicality and has little bearing on the actual value of a stock. In fact, many stocks are issued with a par value of just a few cents, while their market value may be significantly higher.

In practice, the price of a stock is determined by the total assets divided by the number of shares issued, and is not directly related to its par value. As such, par value is not a useful indicator of a stock's value or performance.
 

A corporation is a type of legal entity that is separate and distinct from its owners, or shareholders. It is created through the process of incorporation, which involves filing certain legal documents with the appropriate government agency. Once incorporated, a corporation has many of the same rights and responsibilities as an individual, including the ability to own property, enter into contracts, sue and be sued, and pay taxes.

One of the key features of a corporation is limited liability. This means that the owners of the corporation (the shareholders) are not personally responsible for the debts and obligations of the corporation beyond the amount of their investment in the company. This makes it easier for corporations to raise capital from investors, as it reduces the risk for individual investors.

Corporations can take many different forms, including publicly traded and privately held companies, as well as partnerships and cooperatives. They are governed by a board of directors, which is elected by the shareholders, and are required to follow certain rules and regulations set out by the government in the jurisdiction in which they are incorporated.
 

Yes, a corporation is required to have a registered agent in the state where it is registered to do business. A registered agent is a person or company that is authorized to receive legal and tax documents on behalf of the corporation, such as lawsuits, tax notices, and other official correspondence from the state.

The registered agent must have a physical address in the state where the corporation is registered, and the agent's name and address must be included in the corporation's articles of incorporation or other formation documents that are filed with the state. The registered agent must be available during normal business hours to receive legal and tax documents and must forward them to the appropriate person or department within the corporation.

Having a registered agent is important because it ensures that the corporation receives important legal and tax notices in a timely manner. Additionally, it helps to ensure that the corporation complies with the state's rules and regulations for registered businesses. If a corporation fails to maintain a registered agent, it may face penalties or even lose its ability to do business in the state.
 

You have the option of preparing all the legal documentation and filing it yourself or you may choose to employ a professional, expedited, corporate filing service such as RushFiling, which many attorneys use. An attorney is not necessary to form a corporation but they can provide legal advice, direction and opinions which RushFiling cannot. It is not required that you use a lawyer when you want to form a corporation.
 

A corporation can be formed by any individual or group of individuals who meet the requirements set forth by the state in which the corporation will be registered. Typically, the requirements for forming a corporation include:

1. Selecting a business name that complies with the state's rules and regulations for corporate names.

2. Choosing a registered agent who will receive legal and tax documents on behalf of the corporation.

3. Request RushFiling to draft and file articles of incorporation with the state.

4. RushFiling will create bylaws, which are the rules and procedures that will govern the corporation.

5. Appointing a board of directors who will oversee the corporation's operations and make strategic decisions on behalf of the company.
 

A C Corporation (C Corp) is a legal structure for a business entity that is taxed separately from its owners. The term "C Corporation" comes from Subchapter C of the Internal Revenue Code, which outlines the federal taxation of these entities. Unlike pass-through entities such as sole proprietorships, partnerships, and S Corporations, C Corporations are subject to double taxation, where both the corporation and its shareholders pay taxes on the same income.

Here are key characteristics of C Corporations:

1. Separate Legal Entity: A C Corporation is a separate legal entity from its owners (shareholders). It can enter into contracts, own property, and conduct business in its own name. The corporation itself is responsible for its debts and liabilities.

2. Limited Liability: Shareholders of a C Corporation enjoy limited liability, meaning that their personal assets are generally protected from the debts and legal obligations of the corporation. This protection is one of the key advantages of the corporate structure.

3. Double Taxation: The major drawback of C Corporations is the concept of double taxation. The corporation is subject to income tax on its profits, and shareholders are taxed on any dividends they receive. This results in income being taxed at both the corporate level and the individual level.

4. Unlimited Number and Types of Shareholders: C Corporations can have an unlimited number of shareholders, and there are no restrictions on the types of entities or individuals who can be shareholders. This flexibility is in contrast to the restrictions imposed on S Corporations.

5. Multiple Classes of Stock: C Corporations can have multiple classes of stock with different rights and preferences. This flexibility allows for various ownership structures and the ability to attract different types of investors.

6. Perpetual Existence: C Corporations have perpetual existence, meaning that the business continues to exist regardless of changes in ownership or the death of individual shareholders. The continuity of the corporation is not affected by changes in the composition of its ownership.

7. Formal Structure and Governance: C Corporations typically have a more formal structure and governance requirements compared to other business entities. They are required to have a board of directors, hold regular shareholder meetings, and maintain corporate records.

8. Preferred for Public Companies: The C Corporation structure is often preferred for companies planning to go public through an initial public offering (IPO) since public investors are more familiar with and accustomed to investing in C Corporations.

9. Flexibility in Employee Benefits: C Corporations can offer a wide range of employee benefits, including health insurance, retirement plans, and stock options. This can be advantageous for attracting and retaining talented employees.

When considering a C Corporation, business owners should carefully weigh the advantages and disadvantages, including the potential tax implications, governance requirements, and their long-term business goals. Consulting with legal and financial professionals is advisable to make informed decisions based on the specific needs and circumstances of the business.
 

Forming a corporation can be a beneficial choice for certain businesses based on a variety of factors. Here are some reasons why someone might choose to form a corporation:

1. Limited Liability Protection: Like an LLC, a corporation provides limited liability protection to its owners (shareholders). This means that the personal assets of shareholders are generally protected from business debts and liabilities. In the event of legal actions or financial difficulties, the shareholders' personal assets are typically shielded.

2. Separate Legal Entity: A corporation is a separate legal entity from its owners. This legal separation can provide additional protection for shareholders, and it can contribute to the continuity of the business even if ownership changes.

3. Ability to Raise Capital: Corporations have various options for raising capital, including issuing stock. This makes it easier for a corporation to attract investment from a large number of investors, which can be crucial for businesses with ambitious growth plans.

4. Perpetual Existence: Corporations can have perpetual existence, meaning that the business continues to exist regardless of changes in ownership or the death of individual shareholders. This can contribute to the long-term stability and continuity of the business.

5. Ease of Transfer of Ownership: The ownership interests in a corporation (shares of stock) can be easily transferred between shareholders, facilitating the buying and selling of ownership stakes. This liquidity in ownership can be attractive to investors and can simplify the process of transferring business interests.

6. Tax Planning Opportunities: While corporations are subject to double taxation (corporate profits are taxed, and dividends distributed to shareholders are taxed again at the individual level), there are tax planning opportunities, such as the ability to retain earnings within the corporation and take advantage of deductions and credits.

7. Professional Image: Operating as a corporation can contribute to a professional image and credibility. Some businesses and investors may prefer dealing with a corporation, perceiving it as a more established and formal business structure.

8. Employee Benefits: Corporations can offer various employee benefits, including health insurance, retirement plans, and stock options. These benefits can help attract and retain talented employees.

9. Access to Employee Stock Ownership Plans (ESOPs): Corporations have the option to establish ESOPs, allowing employees to become partial owners of the company through stock ownership. This can be a powerful incentive for employee motivation and loyalty.

10. Public Offering Possibility: If a company envisions going public through an initial public offering (IPO), a corporate structure is typically more suitable. Public investors are more familiar with and accustomed to investing in corporations traded on stock exchanges.

While corporations offer these advantages, it's important to note that they also come with more formalities, administrative requirements, and potentially higher operational costs compared to other business structures. Choosing between an LLC and a corporation depends on the specific goals, characteristics, and preferences of the business owners.