All Topics > Business Services > Overview: Corporations >

Overview: Corporations Connecticut

While incorporation requires more paperwork and expense than sole proprietorship,it does give you one critical benefit - protection from liability.

Local Companies

Fireball PC
860-653-3219
Simsbury Road
West Granby, CT

ActionCOACH NOW of CT
203 210 7003
1175 Post Road East
Westport, CT

Select Business Solutions
888-472-7347
35 Nutmeg Drive
Trumbull, CT

Exchange Club of Madison
203-245-9059
P.O. Box 644
Madison, CT

Audubon Guilford Salt Meadows Sanctuary
203 458-2582
330 Mulberry Point Road
Guilford, CT

BSA Troop 474
203 457-0266
88 Barnshed Lane
Guilford, CT

Connecticut Council on Problem Gambling
203 453-0138
47 Clapboard Hill Road, #6
Guilford, CT

CT Yankee Council - Scouts of Guilford
203-671-1454
235 New England Road
Guilford, CT

Faulkner's Light Brigade
203-453-8400
47 Driveway
Guilford, CT

Girl Scouts of Connecticut
203-239-2922
20 Washington Avenue
North Haven, CT

While incorporation requires more paperwork and expense than sole proprietorship, it does give you one critical benefit - protection from liability.

A corporation is a separate legal entity from the person (or people) that owns it. The corporation, not the owner, enters into business deals, owns property, borrows money, and engages in other business activity. Because the corporation is involved in these business deals, you and your personal assets will, in many cases, be protected from liability if something goes wrong.

For businesses with more than one owner, incorporating can often protect you from the actions and misdeeds of your co-owners. This is unlike a partnership, where each partner is personally liable for the business-related actions of all the partners.

There are other benefits to incorporating. You can gain access to benefit plans only available to corporations. It also creates a positive image for your company - when you are trying to raise capital, obtain credit card merchant status, win certain kinds of new customers, or do business in foreign countries, incorporation can be important for appearance's sake.

You should be aware that corporate liability protection is not absolute. If you are interested in incorporation because of the protection it promises, look at the following exceptions:

It cannot protect you from your own bad acts. Being a director of a corporation does not protect you from personal liability from the wrongs you personally commit. For example: You run a package delivery service and you fill in for a driver who has called in sick. If, in the process, you run into a busload of people, you are personally liable for the damage.
It cannot protect you from things you personally guarantee. Banks and some corporate creditors often require personal guarantees from people in a corporation. So if your business were to fail, you would be personally responsible for repaying these debts. In addition, you don't want to become personally liable inadvertently... so be certain your name, title, and company name are on anything you sign.
It cannot protect you from owing governmental trust fund taxes (withholding taxes and sales taxes). When taxes are held in trust, all officers and anyone who has check-signing authority are jointly liable to the government for these taxes. That means that as a principal, you cannot hide behind the corporation and will be personally liable for these taxes if they are not paid.
It cannot protect you from some state laws. New York, for example, has a law which says that the ten largest shareholders of a corporation are personally responsible for unpaid employee wages. If a restaurant operates for three years and goes out of business, the owners and principals are personally responsible for any unpaid salaries.
It cannot protect people in certain professions. Professionals including doctors, lawyers, and accountants are personally liable in any lawsuit.

Featured Local Company

Fireball PC

Fireball PC is a full service computer sales and service solutions company.

860-653-3219
Simsbury Road
West Granby, CT
www.fireballpc.com

Fireball PC is a full service computer sales and service solutions company. We have been serving business and residential customers throughout Connecticut, Massachusetts, Rhode Island and New York for over a decade. Fireball PC offers our customers onsite computer service, repairs, upgrades and installation. We also offer hardware and software sales, printer sales and service, VoIP Telephone sales, service and installation. Contact us today and let our factory trained and certified technicians resolve any and all of your computer and IT needs.

Read more about Overview: Corporations

- Business Entities Connecticut

When you decide to start your own business, one of the most important decisions you will make is determining which business entity is right for your business.

- Surveys: Scam Or Success? Connecticut
- S Corporation Facts Connecticut
- The Merger Process Connecticut
- Professional Corporations Connecticut
- International Trade Connecticut
- Corporate Reputations Connecticut
- Partnerships and Limited Liability Companies Connecticut
- Nonprofit Corporations FAQs Connecticut
- Getting Sponsorship for Your Project Connecticut

Regional Articles

- The Merger Process Connecticut

A merger is a combination of two corporations in which only one corporation survives.

- International Trade Connecticut
- S Corporation Facts Connecticut
- Surveys: Scam Or Success? Connecticut
- Nonprofit Corporations FAQs Connecticut
- Getting Sponsorship for Your Project Connecticut
- Corporate Reputations Connecticut
- Partnerships and Limited Liability Companies Connecticut
- Professional Corporations Connecticut
- Business Entities Connecticut

Related Local Events

Leads Open Group
Dates: 12/30/2009 - 12/30/2009
Location: Laurel Estates
Orange, CT
View Details

Leads Open 3 Group
Dates: 12/31/2009 - 12/31/2009
Location: Brueggers Bagel
Orange, CT
View Details

Business After Hours - Hoffman Audi of New London
Dates: 1/6/2010 - 1/6/2010
Location: Hoffman Audi of New London
New London, CT
View Details

SCORE Counseling
Dates: 1/7/2010 - 1/7/2010
Location: Chamber Office
Glastonbury, CT
View Details

Full Board of Directors Meeting
Dates: 1/19/2010 - 1/19/2010
Location: Darien Rowayton Bank
Darien, CT
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History