Ownership+Structure




 * Legal requirements for incorporating a business in the State of Tennessee: **
 * Having a board of directors and corporate officers.
 * Having stockholders as owners of the company.
 * Holding periodic board meetings, maintaining board minutes and approving corporate resolutions.
 * Allowing the board to authorize certain actions such as borrowing money, entering into contracts and allocating corporate resources beyond routine business transactions.
 * Pros: **
 * __ Owner Protection from Legal Liability __ . Limited amount of legal liability for the corporation's business activities and debts, because in the eyes of the law the corporation is a separate entity
 * __ Ability to Attract Investors. __ The corporation's ability to issue stock is a strong selling point to those willing to invest capital in a business venture.
 * __ Power Structure __ . The corporate business form has an established power and management structure: directors, officers, and shareholders. Each group has its own set of clearly-defined roles and responsibilities within the corporate framework.
 * __ Stock and Stock Options for Employees. __ Especially for larger businesses, the corporate business structure offers an appealing opportunity to potential employees -- stock benefits and stock options.
 * Cons: **
 * __ Time and Cost of Incorporation. __ The incorporation process can be expensive and time-consuming.
 * __ Following Corporate "Formalities." __ All corporations are required by law to observe a number of corporate formalities, to ensure that the corporation is operating as a separate entity, independent of the business's owners.
 * __ Potential Tax Liability. __ The profits from traditional corporations may be "double taxed."

After the decision we have decided to not incorporate. Since we are a small business and wanting to stay local we found it unnecessary to form a corporation. Especially since we are a new company and we don’t have much money the price we would pay to incorporate would be pointless.