Frequently Asked Questions

Why use IncAdvantage?

How do I contact IncAdvantage directly.

What credit cards are accepted?

What is a Corporation?

What are the different types of corporations?

What is a close corporation?

What is a professional corporation?

What is a C-Corporation?

What is an S-Corporation?

What is an LLC?

What are the advantages of incorporating?

What are the disadvantages of incorporating?

Who can form corporations?

How I do I determine if the corporate or limited liability is available for use?

Why must my business designate and maintain a Registered Agent?

What is the purpose of a Registered Agent?

What happens if my company fails to register or designate and maintain a Registered Agent?

Why should I designate a professional Registered Agent?

Who is National Registered Agents, Inc. ("NRAI") and who are their clients?

Is my business in control of how NRAI processes matters on its behalf?

What about confidentiality between NRAI and my company?

How is my company protected using NRAI?

How do I become a business partner?

Why use IncAdvantage?
The management staff of IncAdvantage has more than 100 years of experience handling the details of the incorporation and registered agent process. We are well-schooled in the various state intricacies and filing requirements. We'll get your corporation or Limited Liability Company formed quickly and correctly.

How do I contact IncAdvantage directly.
We can be reached toll free at 877-462-2388

What credit cards are accepted?
We accept Visa and Mastercard. Payment is made at the time an order is placed.

What is a Corporation?
A corporation is a legal entity established by individual(s) under the laws of a state to conduct particular types of business or transactions. The corporation exists separately from its shareholders, directors and employees. A corporation is a 'person' in the eyes of the law. A corporation functions in the same manner as a person and has the same rights and responsibilities as a person. The corporation may make contracts, assume liabilities, sue and be sued. The corporation and its shareholders and directors have specific duties and obligations to each other.

What are the different types of corporations?
A business corporation is formed for the purpose of transacting business in the broadest sense of the word, and these transactions are conducted to return a profit. Business corporations are either domestic or foreign corporations. A domestic corporation has been incorporated under the laws of a specific State. A foreign corporation has been incorporated under the laws of another state or country and, by registering with the state, may be authorized to do business within a different State.

What is a close corporation?
A close corporation is designed to make it easier for a corporation with a small number of shareholders (number varies from state to state) to operate as a corporation. A close corporation can choose not to have a board of directors, annual meetings or bylaws if so stated in its articles of incorporation.

What is a professional corporation?
Professional corporations are formed by those persons licensed to practice certain professions which are eligible to be shareholders in this type corporate entity. Those professions eligible to organize vary from state to state but normally include: accountants; architects or engineers; attorneys at law; chiropodist-podiatrists; chiropractors; dentists; optometrists; physicians, surgeons, doctors of medicine or doctors of osteopathy; psychologists; veterinarians; registered nurses; any natural person licensed as a real estate salesperson; and physical therapists.

What is a C-Corporation?
A C-Corporation is not actually a business structure, but a "tax status" of the company. All corporations are C-Corporations unless they opt to take advantage of a provision in both federal and state tax laws to become S-Corporations. Taxes on profits of a C-Corporation are paid by both the corporation itself and the shareholders when the profits are received as dividends. However, shareholders cannot deduct any losses posted by the C-corporation.

What is an S-Corporation?
An S-Corporation is not a business structure, but is a type of "tax status" that an existing corporation may choose to elect. Closely-held corporations may elect to be taxed as federal or state S-Corporations (IRC 1361-1379), which permit shareholders to pay taxes on corporate net income personally, as if it were a partnership. S-Corporation status is limited to corporations that have a certain limited number of shareholders. The percentage of income the corporation can derive from passive investments is also restricted.

What is an LLC?
The LLC has some of the attributes of a sole proprietorship, a general partnership and a corporation. For tax purposes, it is treated as a partnership unless an election is made to be treated as a corporation.

The LLC has members rather than shareholders. It has a manager or managers instead of a board of directors. Management may be vested in the members or it may be vested in a professional manager or managers.

It is essentially a business entity created by contract between the members, much as a general partnership. However, in order to be legally recognized, it must file Articles of Organization with the Department of State. The members are protected from personal liability for the acts of the LLC, much like shareholders of a corporation. The affairs of the LLC are governed by an Operating Agreement adopted by the members of the LLC.

The LLC differs from an "S" corporation in that it is not restricted in the number or types of individuals or other entities which may be members. It also differs from a limited partnership by not imposing personal liability on members for participating in the management of the LLC.

What are the advantages of incorporating?
Advantages of a corporation are that liability is limited to the amount owners have paid into their share of stock, and the corporation's continuity is unaffected by the death or transfer of shares by any of the owners.

What are the disadvantages of incorporating?
Some disadvantages are extensive record keeping, close regulation, and double taxation (taxes on profits and taxes on dividends paid to owners).

Who can form corporations?
Business corporations may be formed by one or more individuals or by another corporation.

How I do I determine if the corporate or limited liability is available for use?
The availability of a corporate name may be checked by telephone; however, telephone name searches are only preliminary and do not guarantee the availability of the name. Three names in order of preference should be selected to submit for availability.

The name of a business corporation or limited liability company must contain specific words determined by the individual state statutes. Corporate names normally include such words as "corporation", "company", "incorporated" or "limited" or end with an abbreviation of one of those words; and limited liability company names normally contain such words as "Limited Liability Company" or end with the abbreviation "L.L.C."or "LLC."

The name must be distinguishable from the name of any other foreign or domestic business entity registered under any law of this state. If the desired name is already in use or reserved, it must be changed to make the desired name distinguishable from the name of that other business entity.

Why must my business designate and maintain a Registered Agent?
The law requires it, plain and simple. Any entity conducting business within a state must register to do business in that state, designate and maintain a registered agent, and in some cases a registered office.

What is the purpose of a Registered Agent?
Registered Agent acts as the representative for accepting Service of Process served upon the company within the jurisdiction of any state where the company conducts business. Service of Process is broadly construed to include any legal proceeding, legal notice, or official government communication presented to the company while it is within the jurisdiction of a state.

What happens if my company fails to register or designate and maintain a Registered Agent?
The failure, to register and designate a resident agent, may foreclose or hinder the company's ability to legally enter into contracts and gain access to the state courts. Moreover, it may subject the company to monetary, civil, and possibly criminal sanctions. Also, failure to maintain a registered agent may cause your company to fall out of "good standing" within the state. This will subject your license to do business within a state to forfeiture, with monetary penalties assessed to reinstate your company to a "good standing" again.

Why should I designate a professional Registered Agent?
First and foremost, the security and peace of mind knowing a professional Registered Agent is protecting your company. Lawsuits can be ticking time bombs, fraught with potential liability for your company. Ensuring each Service of Process is properly received, forwarded to counsel correctly, and on a timely basis, is the first step in defending against a default judgment which could foreclose all opportunity to have your side heard. By appointing a professional organization to handle this responsibility establishes good business practices. As a professional Registered Agent, NRAI is an expert in the field of statutory representation. Unlike an employee or other individual for whom acting as registered agent is only one of many responsibilities, NRAI does not quit, go on vacation, relocate, or die. Since NRAI handles the Registered Agent responsibilities exclusively for thousands of business entities, there is never any guess work with the process of handling a Service of Process.

Who is National Registered Agents, Inc. ("NRAI") and who are their clients?
NRAI is a nationwide, professional Registered Agent. As such, it is fully licensed to act on your behalf in all fifty states, District of Columbia, and including many international jurisdictions. NRAI's sole business is to act as Registered Agent for a variety of business entities comprising of: Business Corporations, Not-for-Profit Corporations, General Partnerships, Limited Partnerships, Limited Liability Companies, Tax Haven Corporations, Insurance Companies, and Banking Companies. NRAI represents literally thousands of companies large and small throughout the world.

Is my business in control of how NRAI processes matters on its behalf?
Absolutely! NRAI has established time-tested procedures for handling Service of Process. NRAI recognizes, however, the procedures for every client may differ according to the needs of each client. As such, all procedures are agreed to in advance and in writing, and can only be changed in writing. This way NRAI will never act on your behalf without your approval.

What about confidentiality between NRAI and my company?
NRAI has an absolute policy of keeping all client information strictly confidential. Unfortunately, there are infrequent times, however, when NRAI is presented with a subpoena legally compelling disclosure of client information. Under these circumstances, NRAI must disclose requested information under penalty of law. Rest assured, under such circumstances, NRAI always consults with the client first. NRAI's personnel and their affiliate agents always verify a request for information is from an authorized source.

How is my company protected using NRAI?
Accuracy, quality, value, and client service are NRAI bywords. NRAI maintains full Errors and Omissions Liability coverage through nationally known insurance carriers.

How do I become a business partner?
Please email us at ClientServices@incadvantage.com for more information. Also, you can reference our business partners section directly from the home page.