Business address - This is
the address where you actually do business - it can not
be a Post Office Box number.
Mailing address: If you
prefer to have your forms and correspondence mailed to
an address other than you business address. This address
can be a Post Office Box number.
Business organization type:
This is based on your federal income tax
classification (e.g., corporation, partnership,
sole proprietor) and whether your business is a Limited
Liability Company (LLC).
Description of the business:
What type of goods and/or service will be provided.
Personal information: If an owner, officer,
member, manager, shareholder, executor, or trustee is an
individual, you must have their legal name
and Social Security number (SSN). If an owner, officer,
member, manager, shareholder, executor, or trustee is a
business, you must have the legal name and
FEIN.
Responsible party: The name,
address, and SSN of each person who will be responsible
for filing returns and paying the tax due.
Federal Employer Identification Number
(FEIN): If you
are required to and have obtained your FEIN, please
provide your FEIN in your registration or contact us
when you receive it.
Stocks
The number and type of stocks (or
Shares) that will be issued:
Common Stock:
Common shares represent ownership in a
company and a claim (dividends) on a portion of profits. Dividend is not guaranteed
with Common Stock. Investors get one vote per share to elect the board members, who oversee the major
decisions made by management. Common stocks entail the
most risk. If a company goes bankrupt and liquidates,
the common
shareholders will not receive money until the creditors,
bondholders and preferred shareholders
are paid.
Preferred Stock:
Preferred Stock
represents some degree of ownership in a company but
usually doesn't come with the
same voting rights. With preferred Stock, investors are
usually guaranteed a fixed
dividend forever. Another advantage is that in the
event of liquidation, Preferred shareholders are paid
off before the Common shareholder (but still after debt
holders). Preferred
stock may also be callable, meaning that the company has
the option to purchase the shares
from shareholders at anytime for any reason (usually for
a premium).
Different Classes of Stock:
Common and
preferred are the two main forms of stock; however, it's
also possible for companies to
customize different classes of stock in any way they
want. The most common reason
for this is the company wanting the voting power to
remain with a certain group;
therefore, different classes of shares are given
different voting rights. For example, one class of
shares would be held by a select group who are given ten
votes per share while a second
class would be issued to the majority of investors who
are given one vote per share. When there is
more than one class of stock, the classes are
traditionally designated as Class A and
Class B.
How Do You Value The
Stock
The value of each stock:
As the owner and incorporator you set the initial value
of each Stock.
It is usually based on the value of the
company at the time, i.e. based on the value
of all assets assigned to the company at the
time you're registering it.
Hence it value of the assets divided by the
number of shares you want to have.
