Starting a One Person Corporation (or LLC)
BusinessWeek has an article about starting a one person corporation. The reader’s question is about setting up a corporation instead of an LLC so he can issue stock to employees.
The basics of the article are:
Setting up a corporation is not as complicated as most think.
Most states recognize a “1 person corporation” (Editor’s note: ALL states now recognize 1 person corporations or LLCs).
As a 1-person corporation, make sure to issue stock certificates and keep meeting minutes.
LLCs can also offer employees equity stakes in the company, though not as straightforward as corporations. The overall simplicity of the LLC makes this option attractive to small businesses.
Of course, none of this is news to us. Our incorporation and LLC formation packages are perfect for one-person companies and include the necessary minutes, stock certificates, a handbook and even a checklist for doing the proper startup procedures step-by-step.