Corporations
Petock & Petock, LLC represents local corporations and corporations throughout the United States. We are experienced and ready to assist with all of your business needs from formation of a corporation or other entity, registering trademarks and fictitious names for your business, securing intellectual property rights, drafting or reviewing contracts and agreements, all the way to the possible sale of your business. It is highly advisable that all corporations have an attorney to advise with respect to the corporate formalities which are required by the Pennsylvania Corporation Bureau and established case law and with respect to all other areas of business such as contracts and agreements. Petock & Petock is ready to become part of your business team.
Corporate Primer:
Corporations are entities separate and distinct from their owners that offer limited liability and maximum flexibility with respect to the nature of ownership and debt instruments. A corporation is often the better choice for larger and more complex businesses since the corporate form allows for delegation of authority and a variety of financing and compensation techniques.
One disadvantage of the traditional “C” Corporation is the problem of double taxation. With a “C” Corp retained earnings that are paid out to shareholders in the form of dividends are taxed once at the corporate level and then again at the individual level.
Electing to incorporate as an “S” Corporation, however, provides “pass through” taxation. Generally an “S” Corp is taxed like a partnership with income, gain, deductions and loss passing through to the shareholders.
With all corporation there are formalities that must be adhered to in order to preserve the corporate status and the advantages that go with it. Failure to pay proper attention to these formalities can cause the corporate veil to be pierced.
Especially with smaller “Close Corporations” it is highly recommended that a Shareholder’s Agreement is adopted.
