|
In
most instances, it's very wise to incorporate,
because it takes the financial liability off of your
personal assets. Incorporation is very important for
home businesses, because if a customer sues you in
court, you need to have your personal assets
protected by a corporation status.
There
are several forms of incorporation:
- Sole
proprietorship
- Partnership
[limited or general]
- Corporation
[S, C or LLC]
»
Click
to view a full explanation of each form of
incorporation.
When
you are ready to incorporate, you can painlessly » click
to file your corporation status online here.
Several
things you need to know if
you decide to form a corporation:
Start
by understanding that it usually makes the most
sense to stay put and incorporate in the state where
you do most of your business. If you form an
out-of-state corporation (such as in Delaware or
Nevada, two of the current favorites), you will end
up having to qualify to do business in your home
state anyway. Unfortunately, this process is similar
to incorporating in your state, and costs the same.
You also will have to pay any state corporate income
taxes levied in your home state for income earned
there. Even if another state has more modern or
flexible corporation laws, these mostly favor large,
publicly-held corporations, not the smaller type of
privately-held corporation most small business
owners form.

Incorporating
is relatively easy as long as
you and close associates and family members will own
all stock and none will be sold to the public. It's
so easy, in fact, that the necessary legal documents
- principally your Articles of Incorporation and
Corporate Bylaws - can usually be prepared in a few
hours. The first step is to check with your state's
corporate filing office (usually either the
Secretary of State) and federal and state trademark
registers to be sure the name you want to use is
available.
You'll
also need to complete (but not file) Corporate
Bylaws. These will outline a number of important
corporate housekeeping details such as when annual
shareholder meetings will be held, who can vote and
the manner in which shareholders will be notified if
there is need for an additional "special"
meeting.
Assuming
your corporation has not
sold stock to the public, conducting corporate
business is remarkably straightforward and
uncomplicated. Often it amounts to little more than
recording key corporate decisions (for example,
borrowing money or buying real estate) and holding
an annual meeting. Even these formalities can often
be done by written agreement and don't usually
necessitate a face-to-face meeting.
Fortunately,
it's easy and safe to incorporate your business
without a lawyer and, once incorporated, to operate
your corporation.
.
We
recommend BizFilings.com,
a company we have worked with for years now. They
offer complete information to guide you through the
entire process.
They
cover the FAQ of incorporating, take the mystery out
of filing, the costs involved, which entity might be
best for you and your business, and more. They
service companies within the USA and
Internationally.
The
main reason we recommend BizFilings.com is because
they make the entire process painless and simple.
Filing incorporations is 'their business'. They know
what they're doing. » Click
to visit BizFilings.com
»
Click Here to download our Free ebook:
Why & How to Incorporate Your Small Business
.
Are
You Legally Entitled to Use Your
Chosen Business Name?
Before
you do anything, perform
a free Trademark Search and confirm the business
name you want to use is not already taken.
|