Incorporation in North Carolina

Find the right Business Incorporation attorney in Lumberton, NC

For businesses seeking identification as separate legal entities, North Carolina law allows them to undergo the process of incorporation. As a separate entity from the owners, the business is then considered to be acting on its own when it buys and sells property, assents to contracts and exercises legal rights. To incorporate in North Carolina, a business must file with the Secretary of State in compliance with specific guidelines.

Benefits of Incorporation in North Carolina

A corporation enjoys advantages that unincorporated companies do not. Primarily, it cannot be held accountable for an amount of debt greater than the value of the assets that the owners have invested in it. Without incorporation, the personal property of business owners is at stake should the company become unable to pay its debts. A corporation also allows creditors in the Lumberton area to assess the credit worthiness of the business as a whole rather than that of its owners, allowing the business to get loans more easily. Lastly, the ownership of a corporation is divided into an abundance of equal portions or "shares" of stock. Without this mechanism, transferring ownership of a business would be impractical.

Costs of Incorporation

Along with a possible fee to apply for incorporation in North Carolina, there are other costs that corporations incur. The most important is that a corporation is taxed as its own entity. In other words, the profits a corporation makes are now taxed separately, while any disbursements to shareholders are taxed as individual income. This is called double taxation. However, a business might avoid this disadvantage with proper planning and assistance from a local Lumberton lawyer.

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Life in Lumberton

Lumberton is a city located in Robeson County, North Carolina. It currently has a population of approximately 20,000 people.

The city is located on the Lumber River, and was founded in 1787 by an Army officer, a few years after the end of the American Revolutionary War.

Originally, the Lumber River was used as a major route to transport lumber. Before the advent of mechanized transportation, it was common for lumber to be transported long distances by floating it down large rivers, and such transport was a major source of jobs and development for the areas where this transport occurred.

Most of the growth that turned Lumberton into the city it is today, however, occurred during and after WWII, where it was a major shipping center.

Modernly, the Lumber River is a major recreational attraction, allowing for swimming, rafting, and fishing. It is considered one of the most highly-prized recreational sites in the state, thanks to its natural beauty, and the fact that it features large areas of almost completely unspoiled coastal plains habitat.

There are plenty of Lumberton, North Carolina lawyers who can handle whatever legal issue you might be facing.

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