Business Law Assignment 1 Essay

1056 Words Aug 6th, 2013 5 Pages
Re: Sandra’s Corporation
Statement of Facts:
Sandra Seller wants to form a corporation. She has a thriving business in which she buys cheap jewelry and then re-sells it at her store at a substantial profit. She needs some extra cash right now to buy a new store and she does not want to risk her personal assets by taking out a loan. Therefore, Sandra has decided to form a corporation. Sandra would like to sell shares of her business to anybody who is willing to invest in her company, but she wants to limit the total number of shares issued to 100 shares, as she doesn’t want too many people to own the company or make ownership of her corporation overly complex.
Sandra’s residence is:
123 Main St.
New City, New Tudor
Her store is
…show more content…
The Department of State recommends that legal documents be prepared under the guidance of an attorney. The fee for a certificate of incorporation is $125 plus the applicable tax on shares required by Section 180 of the Tax Law. The minimum tax on shares is $10. The tax on 200 no par value shares is $10 (total $135). Checks should be made payable to the Department of State for the total amount of the filing fee and tax.

For DOS use only

Sandra,
You will need to make sure that the business name you plan to use is not already being used by another business. You can do this by doing a name search with the appropriate state agency, which is usually the office of the Secretary of State. If your chosen name is not already in use, you can reserve it with the Secretary of State's office for a period of time, about 120 days, while you prepare your articles of incorporation, articles of organization, or a partnership agreement. You will need to decide which business structure best suits your business.Your business could be structured as a sole-proprietorship,partnership, limited partnership, corporation, S-corporation, orlimited liability company. To decide what form is best, you will need to consider liability issues associated with your business and which form will provide the best tax structure for your business. Depending on what type of business you plan to engage in, you may need a variety of

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