Accepting Credit Cards, Some Alternative Methods
The first alternative we will look at is something called an Email Payments Network. Probably the two most well known are PayPal (http://www.paypal.com/) and PayPlace (http://www.payplace.com/). These services allow customers to pay you with their credit card, and the funds will be instantly transferred into your PayPal or PayPlace account. You will then receive a notification email with the name of the person who sent you money, the amount, and instructions on how to collect it. You may opt to have the network send you a check, or with PayPal you can have it automatically deposited into your bank account. You can also leave it in your account and use it to make payments yourself.
PayPal is the original, so we'll start with them. PayPal accepts MasterCard and Visa. They offer Personal and Business accounts. Personal accounts are free and have a $500 spending limit. Once you verify your bank account, you may charge up to $2000 in each six month period. Businesses must now use a Business account.
Business account will be charged a 1.9% per transaction fee when receiving money. Sending money is always free.
Business Accounts have no limit on credit card funds received. Buyers who have reached their PayPal $2,000 credit card spending limit can still charge their card when sending a payment Business account.
The Business account offers a lot of extra services, like auto-sweep , a 24/7 customer service call center, Batch Pay, Web Accept, and downloadable transaction logs. Auto-sweep (optional, carries a 0.6% fee) will automatically sweep all your funds into your bank account at the end of each day. Web Accept (optional, 1.9% on payments received) Lets buyers click a button on your website, pay you, and then be returned to your website while your payment is sent directly to your account. Batch Pay (optional, cost 2% or $0.25 per payment, whichever is less) lets you send payment to multiple people at once. This is good for paying employees or for paying your customers if you run your own affiliate
program. They also plan to offer debit cards, interest, and checking accounts in the future.
PayPal is currently available through email, Palm organizers and Internet-enabled mobile phones in the U.S. The PayPal platform will soon be extended to other wireless devices, such as Web-enabled pagers.
PayPlace is very similar to PayPal's personal account. PayPlace accepts MasterCard and Visa as well as American Express. Sending and receiving money is free. The maximum you can charge on PayPlace with your credit card in a 30-day period is $500. PayPlace is only available through email.
To use either service, customers must also have an account. Signing up is quick and easy, and PayPal is currently offering a $5 incentive for signing up and $5 for each person you refer whom signs up and verifies their bank account. PayPlace is no longer offering sign-up incentives, but both companies say they will have ongoing bonuses for members in the future. PayPal and PayPlace are currently only available to US residents, but PayPal plans to expand to international users soon.
Both services are easy to use and you can have accounts with both at the same time. They offer an easy, inexpensive alternative to merchant accounts, but be wary of copycat services. Some are not legitimate.
American Incorporators Ltd.
 As one of the largest incorporating service companies in the United States, American Incorporators provides a comprehensive range of services to businesses wishing to incorporate in any of the 50 states. Headquartered in corporate-friendly Wilmington, Delaware, American Incorporators and its affiliated companies have been providing entrepreneurs, business owners and their advisors worldwide with efficient and cost-effective incorporating services for over 20 years.
Our hallmark is reliable and accurate service, while remaining dedicated to the highest business standards. American Incorporators has direct online access to the Delaware Division of Corporations and an extensive network of agents throughout all 50 states. In addition to providing thorough incorporating services, once your corporation or LLC is established, we can assist you with other corporate services, such as registered agent representation.
American Incorporators is a member of the Delaware Better Business Bureau and the Delaware State Chamber of Commerce.
 OLD-FASHIONED CIVILITY
We strive everyday to provide the best, most customer-friendly and fastest personal service in the incorporation business. We've been doing it, and well, for about twenty years.
Our responsibility to you include (1) treating you with respect and courtesy, (2) preparing your paperwork in accordance with your instructions in a fast and efficient manner, and (3) should a mistake be made (and although it is rare, it will happen) rectifying it to the best of our ability.
In turn, we expect that our clients will (1) treat our staff with respect and courtesy, (2) plainly communicate that which they wish to purchase and (3) when a mistake is made by them (and although rare, it also happens), that they will be honest enough to admit it in order that we both may try to rectify the problem.
Working cooperatively and with mutual civility, the client's enterprise will get started fast and on the right track.
Why Incorporate? Protection of Personal Assets
The major reason why individuals choose to incorporate their business is to protect their personal assets, such as a home, car or family savings. In the event of a lawsuit, or if your business should fail, your personal assets cannot generally be touched. In a sole proprietorship or partnership, the individual or partners are personally liable for all business debts. However, it is never too late to get the additional limited liability protection that Corporations and Limited Liability Companies enjoy. Simply incorporate your existing business and the protection is automatic.
Tax Advantages
Corporations and LLCs can take advantage of tax savings options that are not available to sole proprietorships or partnerships. For example, corporations can establish pension, profit-sharing and stock ownership plans, which can lower the corporation's taxable income. Medical, life and disability insurance premiums are also completely tax deductible for corporations. In addition, a corporation can own shares of stock in another corporation and receive 80 percent of the dividends tax-free.
Corporations can raise capital by issuing stock,bonds or other securities.
Corporations and LLCs are the most enduring form of business structure. If a corporation owner dies, their portion of the business can be transferred quickly without interruption of the corporation's operations.
Estate and family planning is simplified since shares of a corporation can be easily distributed to family members.
Corporations and LLCs often experience a greater ease in doing business. Many stores and banks favor corporate accounts and offer discounts.
Why Incorporate in Delaware? Here's why Delaware is the preferred state for Incorporation
Corporations and LLCs, large and small, domestic and foreign, choose Delaware for their corporate headquarters, even though few have any sales or manufacturing facilities located in the state. Delaware, the second smallest state in the nation, is the home of nearly 60 percent of the companies listed on the New York and American Stock Exchanges and more than half of the Fortune 500 firms. Many international companies interested in doing business in the United States and in other jurisdictions worldwide choose Delaware because of its favorable corporate law structure, stability, and reputation as the "American Corporate State."
It's easy to form a Delaware corporation or LLC by phone, fax or mail. American Incorporators can check and reserve your preferred corporate or LLC name within minutes and form your new Delaware corporation or LLC that same day.
The cost to incorporate in Delaware is less than in any other state. American Incorporators can incorporate your business in Delaware for as little as $149.00.
There is no minimum capital investment required to form a corporation or LLC in Delaware. While other states require an investment of $500 or more, there is no capital investment required in Delaware.
One individual can hold all the corporate offices, including president, treasurer and secretary, in a Delaware corporation. Other states may require different individuals for these offices.
Delaware corporations have a special "director shield" that shelters directors from personal liability related to their actions as board members. Delaware statutes also limit hostile or abusive takeover tactics.
Delaware corporations and LLCs can be operated anonymously with the state never knowing the owner's identity.
The bylaws of Delaware corporations can be formulated or changed at any time by the directors.
Delaware is the only state with a special court system dedicated to corporate law. Through the years, the Delaware Chancery Court has built an unsurpassed body of case law that is often cited as precedent in other state courts. The court has a history of pro-management decisions, and often the outcome of legal actions is predictable.
The corporate headquarters and the records of Delaware corporations can be located in any state or country as long as you maintain a registered agent to represent you in Delaware. Many owners of Delaware corporations have never set foot in Delaware.
There is no Delaware sales tax, property tax or state income tax for corporations and LLCs formed in Delaware that do not transact business within the state.
Delaware's annual corporation franchise tax is as low as $30 plus a $30 filing fee (for LLCs, the annual tax is a flat $200). These annual state fees are kept among the lowest in the nation to attract and maintain corporate business.
There is no Delaware inheritance tax on shares of stock held by nonresidents.
Delaware corporations can pay dividends from profits as well as from surplus.
Properly registered stock of Delaware corporations can be privately owned or publicly traded on any stock exchange in the world.
Delaware corporations and LLCs do not need to maintain a Delaware bank account or Delaware business address as long as you are represented by a registered agent, such as American Incorporators. Currently, over 300,000 companies are registered in Delaware, and few of their officers have ever visited the state.
Types of Incorporations
There are several different types of corporate structures. Although it is not necessary to use a lawyer or an accountant when incorporating, American Incorporators recommends that you consult with either your lawyer or tax advisor to determine the value of incorporating your business and which type of corporation is most appropriate for your business.
Corporation
Although the most formal corporate structure, a general business corporation is the most widely used by both small and large businesses and offers the fewest restrictions. A general business corporation may have an unlimited number of stockholders/owners whose personal assets are generally protected in the event of a lawsuit against the corporation or if the business fails. A stockholder's liability is usually limited to the amount of investment in the business and no more.
Limited Liability Company (LLC)
Limited Liability Companies are a type of business entity. An LLC is a legal entity separate and distinct from its owners, who are called "members." The rights, duties and obligations of LLC members are governed by an "operating agreement." The provisions of the operating agreement are extremely important as they can have a direct impact on how both the LLC and its member-owners are taxed for federal income tax purposes. In addition to tax matters, the operating agreement typically deals with issues of management of the LLC by either members or non-members, transfer of interests in an LLC and termination of the LLC.
When properly structured under applicable state statutes, LLC members have the same limited liability protection which is afforded stockholders in "C" or "S" corporations. This means that, absent any specific personal guarantees, the amount at risk for members of an LLC is limited to their investment in the LLC. Thus, the personal assets of members are generally beyond the reach of the creditors of the business. This liability protection is enjoyed by all members, unlike a limited partnership where at least one general partner must remain liable for partnership debts. And, unlike limited partners, LLC members may be active in the management of the LLC without risking their limited liability status.
LLC members may also enjoy the same flow-through tax benefits which are applicable to partners of a partnership.
An S Corporation also provides limited liability protection to its investors as well as flow-through tax treatment. Nevertheless, there are distinct differences. To begin, there is more flexibility in an LLC then in an S Corporation. For example, members of an LLC may include any number of individuals, partnerships, corporations, trusts, nonresident aliens, etc. This is not the case with S Corporations which require that only individuals and certain trusts and estates own stock and which limit the number of shareholders to no more than 75. Moreover, S Corporations have "one class of stock" restrictions. In addition, all distributions and allocations must be the same for each share. Should an S Corporation violate any of these rules, it causes the S election to be revoked. LLCs may (and typically do) base distributions and allocations on the basis of member contributions, rather than on a per capita basis.
Non-Profit Corporation
A non-profit corporation is designed for businesses engaged in charitable, religious, educational or scientific activities that benefit society in general. The net income of non-profit corporations must be used to further the not-for-profit goals of the corporation, not to enrich individual officers, members or directors. Most non-profit corporations have either tax-exempt or 501(c)(3) status, which exempts them from paying taxes on their income. To get either of these tax designations, an Application for Recognition must be filed by the client (or his attorney) with the IRS and be approved. We will prepare the paperwork for non-profit corporations for only the states of Delaware and New York.
For information and costs to set-up a Non-Profit Corporation in those states click here .
S Corporation
Many business owners find the S corporation attractive because all earnings or losses are passed directly through to their personal income tax return. This avoids the double taxation aspect of a general business corporation. There are, however, certain requirements that must be met to qualify for S corporation status. We recommend that you consult with your tax advisor before choosing this type of business structure. To obtain the S corporation tax status, all shareholders of the corporation must sign IRS Form 2553, and it must be filed with the IRS within 75 days of the date of incorporation. American Incorporators can assist you with this filing.
American Incorporators will form your new Delaware corporation for $149.00 including all service fees and filing fees.
Our complete incorporating services, include:
- Checking and reserving your preferred corporate name
- Preparing and filing your Certificate of Incorporation
- Promptly forwarding the filed copy of the Certificate of Incorporation to you
- Providing the required statutory agent services free for the remainder of the first calendar year
To form your corporation in any other state, please see the attached Fee Schedule for prices.
FAQs
If I incorporate in Delaware, can I do business in other states?
Yes. Your Delaware corporation is known as a domestic corporation in Delaware. In other states, it is considered a foreign corporation. Depending on the nature of the business, you may have to register your Delaware corporation in the state(s) where you plan to maintain offices, hire employees and transact business. However, many businesses prefer to operate as a Delaware business in their home state because of Delaware's many corporate advantages and low annual franchise tax. American Incorporators can register your business in any state.
How do I form a corporation or LLC in the state of my choice?
The formation of a corporation or LLC is not a difficult process, and in most cases, it can be accomplished quickly and efficiently by a professional incorporating service, such as American Incorporators. As your agent, we will investigate the availability of your proposed corporate name and reserve it for you. Next, we prepare a Certificate of Incorporation. All state filing fees are paid through American Incorporators to the appropriate state agencies.
What information is required to prepare a Certificate of Incorporation?
In addition to the name of the corporation and the address, you need to provide the director(s) name(s), the county and state where the corporation will be located, and the number of shares of stock that you want authorized. Using this information, American Incorporators can prepare and file the necessary documents.
Do I need a special ending on my corporation's name?
In most states, your corporation's name must include an ending, such as company, corporation, incorporated, limited, association, club, fund, syndicate, union or the appropriate abbreviations (co., corp., inc., ltd., etc.).
Do I need an attorney to form a corporation or LLC?
No. If you use a professional incorporating service, such as American Incorporators, it is not necessary to use an attorney to form a corporation or LLC. However, American Incorporators is always willing to work with your attorney, if you prefer.
Can American Incorporators provide registered agent services in every state?
Yes. In addition to forming corporations and LLC's in all 50 states, American Incorporators has a nationwide network of registered agents that can represent your corporation. Registered agent services for Delaware corporations and LLCs is based on a calendar year. The first calendar year is FREE! For subsequent years our registered agent fee for Delaware corporations and LLCs is $99.00. For Delaware corporations, this fee is due by March 1 of every year. For Delaware LLCs, this fee is due by June 1 of every year. For all other states, our registered agent fee is $125.00 and becomes due every year on the anniversary date of incorporation.
What is the difference between "par" and "no par" stock, and how much stock do I need?
Par value stock has a stated value on its face. No par value stock has no stated value and its worth depends on what an investor is willing to pay. Unless we are instructed otherwise, American Incorporators always requests the minimum amount of authorized shares of no par value stock, so you qualify for the minimum incorporating fee or minimum annual franchise tax.
How and when will I know if my corporation or LLC is formed?
Delaware corporations and LLCs are formed the same day you call us. You will receive your filed documents within five to seven business days. Corporations and LLCs can be formed in other states within 48 hours, and you will receive those filed documents within 7-10 business days.
I understand that you do not open bank accounts for international clients. Would you mind telling me why?
Before the terrorist attack of September 11, 2001, we would consider the opening of bank accounts for some international clients. However, since that time and more particularly, since the passage of the Patriot Act by the U.S. Congress, we have been strongly discouraged from engaging in such activities because we are, among other things, required to vouch for our international clients. Unfortunately, we do not truly "know" our international clients and therefore cannot vouch for them. Accordingly, we have made the decision that we will not open bank accounts for our international clients. We regret the inconvenience this may cause.
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