There are three types of corporations defined by their corporate tax status:
C Corporations have a corporate income tax on their profits.
S Corporations do not have a corporate income tax on their profits.
Non-Profit Corporations are run by different laws. These are formed for religious, charitable, educational, literary or scientific purposes and are therefore tax-exempt.
Do I Need a Corporate Seal?
At one time, corporate seals were required in many jurisdictions to open a corporate bank account, distribute stock or membership certificates and conduct other corporate business. Now however, most states do not require them and the few that do don't police it very well.
Should you choose to use a corporate seal on any official document be aware of what that signifies. Many corporations freely use their seal on all ontracts and other agreements and think nothing of it. In states where the seals are still used, documents bearing the seal are subject to a longer period of limitations. Plainly said, that puts greater liability on the corporation. So it is not a good idea to put the seal on every contract or business agreement. You should consult a corporate lawyer and be familiar with your state laws regarding corporate seals. Because most states do not require these, you could write "sealed" or "LS" on a document and that is oftentimes enough to make the document legally recognized as sealed.
Still Want a Corporate Seal?
Great. Just so you know, a seal is a small press where you place a document to be embossed. The seal will contain the corporation's name, state and date of incorporation.
There are three types of seals:
• The Mark Maker seal - This is the seal of preference. Some would even say award winning! It is ideal for identifying legal documents and books. Its features include: a lifetime warranty, a brass index plate and an easy-to-use wide-grip handle that makes a perfect impression every time.
• The Cast Desk seal - Should you prefer the look and feel of a very traditional seal, this is it. It comes with an identifying brass plate.
• The Pocket seal - A small and compact seal, this is ideal for the on-the-move person. Portability and ease-of-use set this seal apart from the others.
By Lisa Sharp
