How to form a C-corporation for Precious Metals

Introduction

If you’re a precious metals dealer or seller, you may be wondering whether or not it’s necessary to form a corporation. If so, this article is for you. In it, we’ll explain:

If you wish to sell precious metals, you may need to form a corporation

This can be beneficial for several reasons:

• It is less likely that state and federal governments will require you to obtain a license or permit if you are operating as a corporation.
• You have more legal options when dealing with disputes than an individual would have if they were sued by someone.

Decide on a name for your company

Now that you’ve decided to form a corporation, it’s time to choose a name for your new business. Your corporation’s name must be unique from other businesses and trademarks in the state where your business is based. It should not contain any abbreviations or acronyms (like “Inc.,” “Corp.,” or “Ltd.”), nor should it include the words “limited” or “ltd.”

If you are planning on purchasing gold to sell at a later date, there are several things you should consider before making your purchase. First and foremost, make sure that the gold you are considering is real. It can be very difficult to tell if a piece of gold jewelry is actually made out of real gold or some other metal with a similar appearance.

File Articles of incorporation with the secretary of state

• You can do this online, but it’s best to consult an attorney if you have questions about how to best structure your company (e.g., whether or not you should incorporate it in a certain way).
• The next step is to get EIN (Employer Identification Number) number from the IRS, which you’ll need later on when submitting tax returns. This can be done through their website; it costs $256 per year and takes about five minutes plus one day for processing.

If you already have a name in mind, check out the state’s business entity search to see if it’s available. If it isn’t, you’ll need to choose another one once you have your EIN number, it’s time to set up a bank account. You can do this through an online bank like Ally or with a local credit union.

Create a shareholder agreement that addresses how your company will be run and how its profits will be distributed

This contract between the shareholders defines their rights and responsibilities, as well as how profits are distributed. The Corporation itself is not a party to this agreement; rather, it’s an agreement between you and your business partners (if any).

Make sure you follow all laws regarding the operation of a corporation in your state

• Know the difference between a C-corporation and an S-corporation.
• Know the difference between a C-corporation and an LLC.

The Corporation itself has no rights or responsibilities under this agreement, though its shareholders do. The corporation is a separate legal entity from the shareholders and cannot be held liable for any debts they incur C-corporation is a regular corporation, while an S-corporation is a subchapter S corporation. These are two different types of corporations that provide different levels of liability protection for stockholders.

Forming a C-corporation is fairly easy to do with the right guidance and research

There are many resources available to help you, including online guides, instructional manuals, and even software packages that will aid you in the process. If you are unsure of anything or would simply like some additional assistance, it’s always good to ask an expert in tax law or another field relevant to your needs.

If filing paperwork seems overwhelming for you (or if it’s just not something that interests you), consider hiring a lawyer who specializes in business law and taxation matters to assist with the process for a nominal fee.

Conclusion

If you’re looking to start a precious metals business, forming your company as a C-corporation will allow you to grow by providing more protection for your personal assets. As an added bonus, there are many tax advantages that come along with this type of structure as well. If you have any questions about how to form a C-Corporation, please feel free to contact us or schedule an appointment. We would be happy to help!

If you are interested in filing the paperwork yourself, there are many resources available to help guide you through the process. You can find instructions on how to form a C-corporation online by doing some basic research using Google or another search engine. There are also software packages available that will walk you step-by-step through each aspect of creating and operating a business, including filing for tax exemption. Trademark Avenue is happy to help you every now and then!