American Ltd

Recent Posts

Three Easy Steps to Incorporating

Posted by American Ltd on Mar 15, 2019 8:30:00 AM

Thinking of Incorporating?

Thinking of incorporating starting a business incorporation LLC first time steps necessary

Beginning the incorporation process can seem intimidating, but the process is actually easy! For your convenience, American Incorporators has provided this three-step comprehensive list of how to get started! 

Step 1: Select a State

Things to consider when selecting a state:

  • What state doe the entity of a physical presence in?
  • What state does the entity have employee(s) located in?
  • What state(s) does the entity conduct business in?
  • What state does the entity intend to open a bank account in?

Although American Incorporators does not provide legal or financial advice, if you answered any of the above questions with multiple states, you may be required by local agencies to register to do business in more than one state.

*Registering to do business in more than one state is known as a foreign qualification/registration – American Incorporators can assist with foreign qualification/registration


Step 2: Select a Type of Entity

Limited Liability Company (LLC)

An LLC is a legal entity separate and distinct from its owners, who are called "members." Members of an LLC may include any number of individuals, partnerships, corporations, trusts, nonresident aliens, etc.

Ownership: One or more members

Control: Members or managers, as set in operating agreement

Liability: Absent of any specific personal guarantees, the amount of risk for members is limited to their investment in the LLC. Their personal assets are generally beyond reach of creditors.  This protection is enjoyed by all members. LLC members may be active in company management without risking their limited liability status.

Taxation: Members may also enjoy the same flow-through tax benefits which are applicable to partners of a partnership (Taxes are collected on individual partners, not on the entity). 

S Corporation

An S Corporation avoids the double taxation inherent to general business corporations, in which both profits and dividends are taxed.

Ownership: Shareholders –By law, the number of eligible shareholders is limited to 100. Only individuals and certain trusts and estates are allowed to own stock.

Control: Owners share ownership through stock, and business is managed through a Board of Directors; certain legal regulations also apply. 

Liability: Owner’s liability is generally limited to assets in corporation.

Taxation: Corporation is not taxed; income is taxable to the shareholders at their personal income tax rate.

C Corporation or General Business Corporation

The C Corporation is the most widely used by both small and large businesses that plan to have shareholders.

Ownership: Shareholders –Unlimited number

Control: Owners share ownership through stock, and business is managed through a Board of Directors; certain legal regulations also apply. 

Liability: Shareholder liability is generally limited to the each has invested in the corporation, unless acting as guarantor of corporate debt.

Taxation: Corporation pays tax on business income at corporate tax rate. The profits are distributed to shareholders and are taxed at personal income tax rate. 

Non-profit Corporation

A non-profit corporation is designed to provide tax-exempt status for socially beneficial businesses that support charitable, religious, educational or scientific activities. It may not be used if you intend to run your business for profit. Most non-profit corporations have either tax-exempt or 501(c)(3) status, which exempts them from paying taxes on income. To obtain either of these tax designations, an Application for Recognition must be filed with the IRS.

General Partnership

A general partnership involves at least two people, with no maximum on the number of partners allowed. There are no state filings required to form a partnership. Taxes are collected on individual partners, not on the entity. A limited partnership is a statutory form of partnership consisting of one or more general partners who manage the business and one or more limited partners who invest in the business and do not participate in management.

Ownership: Two or more individuals or other entities according to the partnership agreement

Control: By the partners in accordance with partnership agreement

Liability: All partners are jointly and severally liable for all partnership debts

Taxation: Individual partners’ prorated share of partnership income or loss is included on the respective income tax return of the partner and taxed at personal or corporate rates

Sole Proprietorship

A sole proprietorship is a business conducted by one owner, who is taxed as an individual.

Ownership: Individual

Control: By owner

Liability: Owner is personally liable for all business debts

Taxation: All business income is considered personal income to the owner and is taxed at personal income tax rates

Step 3: Contact American Incorporators

To complete the process visit us online:

Or call: 800.441.5940

subscribe to blog

New Call-to-action  


Why Do I need a Registered Agent and Address?

Posted by American Ltd on Jan 12, 2016 8:30:00 AM

The Importance of Having a Registered Agent and Address 

76132042The first and most important reason that your business needs a registered agent and registered address is that it is required by law.  The state in which you choose to incorporate your business in will not approve the initial incorporation/ formation certificate without providing a valid registered agent and registered address.  

The registered agent and address must be located in the state of incorporation or formation and must be a physical street address.  The registered address cannot be a post office box.  The primary responsibility of the registered agent and registered address is to accept all annual report and tax notices from the state and to accept any Service of Process on behalf of the company in the event of a lawsuit.  The registered agent must be available during normal business hours Monday – Friday to accept any Service of Process on behalf of the company.  If your corporation or LLC fails to maintain a registered agent and registered address, the state may declare the company void for noncompliance.  If a corporation or LLC is declared void or noncompliant by the state, it may lose all of the liability protections provided as an incorporated entity.

Need a registered agent and address? We can help! Click Here


Topics: Registered Agent, how to start a business, registered agent Delaware

A Sneak Peak at our Next Free eBook!

Posted by American Ltd on Dec 29, 2015 8:30:00 AM

New year new eBookIn 2016, AIL will be publishing another free eBook! You have already learned about the importance of incorporation, and all of the details about choosing an entity type, naming your entity, and tools to run your newly formed business.  You've incorporated, now what? AIL wants to provide entrepreneurs and new customers with industry insight on all the necessities to run your newly incorporated business.

This new eBook will provide advice and information about business licenses, foreign qualifications, annual tax payments, and "Doing Business As" filings to ensure that your business is operating in compliance with specific state and national regulations.  

We are also sharing advice on the ins and outs of responsible financial planning for your business expenses, whether it be business insurance, book keeping or payroll! 

Lastly, we are sharing our insight on running a successful website, and how it can positively increase your company's visibility and even sales!  

Our new eBook is filled with helpful tips for continuing to run a successful business after you've taken the first step to incorporate! Look out for its launch in 2016!

subscribe to blog

New Call-to-action

5 Tips To Keep Your Small Business Organized in The New Year

Posted by American Ltd on Dec 22, 2015 12:00:00 PM

small business organizationThe way a small business is organized directly influences the effectiveness of the business. Proper organization saves a great amount of time and increases the overall productivity greatly. No matter what are the motives behind it, before the New Year, it is in every small business resolution to do planning and organization in a more proper manner.

Planning and organization of a small business is highly important for success and growth of your small business, and there is a range of simple activities that will help you reach your goal in a cost-effective and efficient manner! These 5 small business organization tips will help you start out the new year on the right track. 

1) Set New Year’s Goals For Your Business 

You can organize your business better by determining the goals that motivate everyone and challenges them to enhance their performance. The New Year’s goals for your business should be realistic and reaching. If goals lack these essential attributes, you might lose your position to the competitors. Another benefit of setting goals is that they encourage the creation of benchmarks and standards, which can be used subsequently to evaluate the actual achievements of the business and productivity of its employees.  

2) Organize Finances For Proper Growth 

One of the major contributors towards the success of a business is the prudence applied to the organization of finances. Weak financial control can lead towards misleading interpretation of the financial position and financial performance of a business. Therefore, it is highly important to organize the finances in order to enhance business growth. Finances can be organized by; separating personal and business finances, recording cash inflows and outflows, and keeping a digital record of financial details on a cloud application which allows access from remote locations. 

3) Communicate With Employees 

The productivity of the business as a whole depends upon the productivity of its employees. In order to enhance the productivity of your employees, you should ensure that there is unrestricted flow of communication within the organization. The responsibilities and targets of each employee should be clearly communicated. The performance analysis should be done on the basis of the assigned tasks and proper feedback should be provided. Employees should also be urged to provide their feedback and point out opportunities for growth.

4) Sort Out Paper Work 

Another activity that can organize your small business is the organization and sorting of important papers. These papers may include State Documents, Annual Report Notifications, client feedback, receipts, leads, and so on. You can sort them in any manner that you find convenient: by date, the type of transactions, or by the customer. It is important that all the information regarding your business is easily accessible. 

5) Measuring Success 

Another important activity that leads to efficiency is keeping track of the growth and success of the business over a specified period of time. This can be done by measuring the extent to which you achieved the defined goals, comparison of this year’s financial performance with the comparative period, and comparing the performance of your business to other similar businesses in the industry.

Along with all the above mentioned, proper human resource management is the key factor to success of any business. Even the best organization and plans will not do you any good if the goals are not met; make sure to hire the best possible people for any given task, make sure to motivate your employees, and never put forward plans that are not realistic.

We'd like to wish everyone a Happy Holiday Season and look forward to helping you in the new year!


subscribe to blog

New Call-to-action

Starting Off the New Year!

Posted by American Ltd on Dec 15, 2015 8:30:00 AM

With Business Goals

Many successful businesses originally started out of a home office. Mary Kay and Apple are two well known companies that started out of a home. In recent years, starting a business from home has become a growing trend. Shows like "Shark Tank" have highlight individuals who start a businesses from home, but the show also highlights how important the correct planning is for success.

Home businesses present plenty of benefits, but there are also pitfalls that can quickly turn a home business sour if not carefully avoided. We've collected 5 tips that will make starting a business from home in 2019 your most successful New Year's resolution yet!


  • Know Your Market. Researching and understanding the business industry you are attempting to enter is the first step to success. Your research phase will help you form your business to best suit you, your audience, and your financial means. Many businesses fail due to poor planning or a poor understanding of the desired market. Networking is another great way to do your research. Connect with business owners within your desired industry to gain a better understanding of what you will be facing when you start a business from home. 
  • Incorporate Your Business. Incorporating your business is a crucial part of achieving success. This process designates the business as a separate entity from yourself. Through incorporation, you designate your business as a corporation or an LLC, and you can protect your personal assets, increase tax savings, and start raising capital. 
  • Create a Business Plan. A business plan is a great way to gain an understanding of whether or not the business you have chosen will be successful. Follow a business plan and carefully work through each step. Creating this business plan before you start a business from home will help you better understand your business model, goals, and finances before a problem arises. 
  • Hire a Professional for Taxation & Business Regulations. Understand the taxation rules and self-employment regulations at both national and state levels. Seek out a professional accountant to gain a better understanding of what paperwork you need to file and how this potential business will affect your taxes and tax bracket. Being educated and informed is half the battle. 
  • Set Up The Space. When you decide to start a business from home you have to be ready to delegate a work space. A garage, a home office, or even a basement or attic, are perfectly acceptable spaces to start a business. Set up the area for business purposes and business purposes only. This space has to be able to accommodate the business you are planning, so be mindful of equipment and resource needs before deciding on a space.

Making the decision to start a business from home can be incredibly rewarding and lucrative, if planning has been thorough and complete. If you decide to start a business from home in 2019, we hope these tips will help you along the way! 

subscribe to blog

New Call-to-action

Annual Requirements for Your Business

Posted by American Ltd on Dec 8, 2015 8:30:00 AM

Maitaining Good Standing

Each year your corporation's state of formation or domestication will set obligations.  These obligations are placed on corporate entities to maintain good standing with the state. The requirements vary by state, but can include paying a franchise tax to the Secretary of State or filing an annual report which lists officers and directors. annual report

What's an annual report? It is a document filed with the Secretary of State. The exact information required on the report and how often it is filed varies by state, but in general you should be prepared to answer questions such as the principal place of business, the company phone number and the names and addresses of officers and directors (or members and manages of an LLC). 

In order to maintain good standing, businesses must also maintain their registered agent office.  If they are using a commercial agent this generally means renewing that service annually.  Often the commercial registered agent can help companies meet their annual requirements through various compliance programs. 

Remember that these annual requirements are distinct and separate from any state or federal income tax that the company may owe.  You should consult your accountant for income tax requirements specific to your business venture. 

New Call-to-action

subscribe to blog

5 Small Business Tips for the New Year

Posted by American Ltd on Nov 24, 2015 8:30:00 AM

For many small businesses, the end of the year can be a busy time. Rectifying paperwork and dealing with the new year can take time and detailed effort. We've collected 5 year-end small business tips that will help ease end of year stress and lead you into a profitable 2016. 

Working Hard-8.jpg

1. Get Organized. It is important to take some time to review your books and make sure they're accurate. In this final stretch, getting things organized and catching up on regular organization will be a big help when tax time comes. Make sure that W-2 forms and 1099 forms are all together, organized and properly filed; if the forms aren't properly handled it, it can quickly turn into a problem for small business owners. 

2. Stock UpAlong with getting everything organized, it is a good idea for small businesses to deal with tax bracket issues before the close of the year. Buying new equipment before 2015 is officially over becomes a write off for the 2015 tax year; the same goes for donating to a charity during the Holiday season. 

3. HireConsider adding a Veteran to your payroll before the end of 2015. The government is offering tax credits up to $9,600 for employers who hire war veterans. The tax credit is especially helpful to small businesses, but the employment of a veteran is even better. Military vets generally have exceptional knowledge, discipline and work ethic; they are certainly an asset aside from tax credits. 

4. Review Your Website. Small businesses that do not keet their website up to date are missing out on many opportunities. You need to maintain your website in order to continue attracting customers. Web content grows old quickly, so take a look at your website and add new, fresh content. This can really give a small business a lift for the new year

5. Get Social. Social media is a branch of marketing that simply can not be avoided or ignored by small businesses . One of the best end of year small business tips that a business can utilize  is to get connected on the newest sites; or at the very least update existing profiles and websites. Adding Facebook, Twitter, and Google+ allows small businesses to "join the conversation" and generate new interest and business. There are plenty of social media management software applications out there to help small businesses manage social media and analyze changes in consumer activity. 

Take a look at these tools recommended for social media management.

HootSuite  With this tool, you're able to manage multiple social profiles, schedule messages and tweets, and track brand mentions.

Klout By using Klout, you'll receive a score, highlighting your influence and strong categories within social media. 

By utilizing these end of year small business tips, the new year can be bright, fresh and wonderfully profitable. Stay tuned for more year end tips as we come closer to the end of the year!

If you haven't incorporated your business yet, learn more about how you can protect your personal assets through incorporation!


New Call-to-action

subscribe to blog



Protecting Yourself and Your Company

Posted by American Ltd on Nov 17, 2015 8:30:00 AM

What is the corporate veil?

The corporate veil is the term used to describe the separation of personal and business assets that occurs when a business is formally incorporated. This is not an automatic protection however, and business owners must make sure they meet all legal requirements to avoid having the corporate veil pierced.

Corporate veil

What are the requirements?

A corporation must make sure they maintain a clear separation between all personal assets and business assets including credit cards, bank accounts and loans. Additionally, corporations are required to maintain documented records of required annual meetings and changes in ownership or by-laws.

LLC's have fewer requirements but also must meet any and all annual filing requirements with the state.  It is important to make sure you are meeting all statutory requirements - failure to do so can void liability protection that incorporating provides and leave your personal assets vulnerable to satisfy business debts. 

Find the answers to all of your major incorporation questions in our new eBook

New Call-to-action

subscribe to blog

Running Your Business

Posted by American Ltd on Nov 3, 2015 8:30:00 AM

By-laws, Operating Agreements, Resolutions and More

running your business operating agreement by-laws

Around the time of incorporation, you will draft your corporate by-laws or operating agreement. Both outline the rules and protocols of how the company will conduct business and who will be in positions of ownership and management. Both remain part of the company's permanent record unless amended by a resolution.

Corporate By-Laws summarize the responsibilities of the officers and directors, describe how the Board of Directors will function, explain when and how board and shareholder meetings will be held, as well as where to find corporate meeting minutes. This document is typically authorized by the initial directors named on the Certificate of Incorporation. Corporate by-laws are not filed with any government authority, but should be filed with other company documents. They remain part of the company's permanent record unless they are amended via corporate resolution. 

Operating agreements (much like corporate by-laws of a corporation) outlines the rules and protocols for how the LLC will operate.  It represents an agreement among the members managing the limited liability company. Specifically, the operating agreement describes the responsibilities of the managers and members, the percentage of member ownership, as well as voting rights. This operating agreement is crucial to providing liability protection to the members of the LLC. It should be maintained with other corporate records such as meeting minutes and membership certificates. 

corporate_kitA corporate kit is a formal binder used to store corporate documents. Because it is so important to protect the corporate veil of your company, a corporate kit is an ideal tool for organizing and maintaning vital corporate records.  The kit includes stock or membership certificates, sample operating agreements and by-laws, as well as minute books.  Corporate kits can be ordered here




Find the answers to all of your major incorporation questions in our new eBook

New Call-to-action

subscribe to blog

Choosing a State to Incorporate In

Posted by American Ltd on Oct 27, 2015 8:30:00 AM

The Best Home-State for your Business

Incorporation is a state-level process so you must choose a state in which to form your corporation.  This becomes your “home state” or “domestic state”. For most businesses this is the state where your headquarters are located, whether it’s your garage or a corporate suite.

Choosing a state to incorporate in varies Delaware Nevada Wyoming business formationIf a company chooses to form in a state where they are not located or if the company conducts business nationally, internationally, or is not U.S.-based, the home state chosen will be based on costs to form, taxes and other legal factors. 

Popular Formation States

Delaware – low formation cost, moderate annual fees, no state income tax and the most favorable legal environment (Chancery Court with well-developed laws)

Nevada – low formation cost, moderate annual fees, no state income tax, similar legal environment to Delaware but with shorter case history)

Wyoming – low formation cost, low annual fees, no state income tax (tax on assets held in Wyoming), corporate and LLC laws which are favorable to corporations.

Florida – low formation cost, moderate annual fees, good online business infrastructure.

South Dakota – moderate formation cost, low annual fees

Colorado – low formation cost, low annual fees

For businesses outside of the U.S., some choose New York or DC as a formation state due to the prestige of the location, particularly in foreign markets.  Neither would be considered low cost, however some U.S. based businesses might find the prestige factor useful for their line of products or services.

Please keep in mind that if you choose to form outside of your home-state, you may have to file as a “foreign corporation” in your state. This “foreign” designation is what states use to differentiate between companies that began their corporate life (filed the papers) in-state (domestic), as opposed to registering after forming in another state.

For more information on state by state incorporation visit our page: Which State?

Find the answers to all of your major incorporation questions in our new eBook

New Call-to-action

subscribe to blog