Presenting gifts are conventional ways of strengthening bonds and in business it is an accepted norm to present gifts to clients. Corporate business gifts with your company logo or name will act as a reminder to your client about your existence. Ensure that the gifts are not too costly or conspicuous and not given with intent of influencing business decisions. Bribery is considered as corrupt business practice and is illegal. A corporation is expected to have business ethics, which is similar to that of government gifts and ethics policy. By forming a corporation the promoters are obligated to subscribe to social and moral policies that are prevalent and considered ethical in the business community.
Forming a corporation involves legal and statutory formalities also. By definition a corporate is a legal entity as that of person. It has to abide by the rules of the society and the constitution like any ordinary citizen. The promoters of a corporation create the legal entity by fulfilling legal requirements of the state in which the entity is incorporated. The corporation, after becoming legal entity functions through its board of directors and operates through its office bearers. The Articles of Incorporation states the purpose for which the entity was created and its organizational structure.
Corporations are incorporated under state law and regulations. Rules and regulations that govern corporations may differ in each state. If you intend to incorporate a company in any of the states, corporate kits will come in quite handy. These corporate kits contain all that is necessary to be filed or put in place by a new corporation. Make sure that you order state specific corporate kits as not to miss out on any of the rules or regulations of that state.
As opposed to forming a corporation, forming llc is less cumbersome. Limited Liability Company is comparatively easy to form and manage. It has the advantage of the limited personal liability of its owners as that of a corporation but does not involve too many formalities like recording minutes or mandatory board meetings etc. Another advantage is that the LLC can elect to be taxed according to it convenience. By default, a single member LLC is treated as a Sole Proprietorship and multi member LLC as a partnership for taxation purposes. However, the owners have the choice to be taxed as a C corporation or even an S Corporation if the LLC meets certain criteria.
