West Virginia Incorporation: Incorporate in West Virginia
West Virginia Incorporation
A corporation headquartered and chartered by the state of West Virginia is considered separate from its owners by law. Like any business, it can be taxed, sued or enter into contractual agreements. The owners of the West Virginia incorporation are considered its shareholders and they choose the board of directors to take care of the day-to-day operations of the business, make major decisions and create policies. It does not dissolve when the owner changes.
Advantages of West Virginia Incorporation
- Shareholders of the West Virginia Incorporation are responsible and accountable for the investment in stock of the company.
- Limited liability for the debts of the company
- Sales of the stock can help in generating additional company funds
- The corporation can decide to increase or reduce the benefits offered to the officers or employees.
- It can opt for S-Corporation status and be taxed similar to a partnership.
Disadvantages of a West Virginia Corporation
- More time and money is involved in incorporation
- As the corporations are scrutinized by federal, state as well as local agencies, it involves more documentation to adhere to the rules and regulations
- Incorporation might lead to higher overall taxes. This might lead to double taxation on the income generated.