Being a successful entrepreneur takes a lot of time and effort. A true entrepreneur will always weigh the pros and cons before starting a new business and won’t blindly take a risk. Now, if you have decided to be the one you need to think about forming incorporation.
Let’s see the benefits of forming incorporation
- Protection: A corporation has a separate legal entity and the company not the owner experiences all the lawsuits. If your company is liable for lawsuits, then you should consult your lawyer and form a corporation. This protects your saving and assets from the court. Moreover, owners have limited liability for business debts.
- Credibility: Incorporating your business boost credibility and provides authority to the business. Also, consumers, vendors like to do business with legitimate businesses.
- Taxation: As incorporation, you will be able to reap many tax benefits as a corporation is charged less as compared to non-corporation.
- Existence: If the owner dies or leaves the business then business ends but in case of corporations and LLCs business still exists even if ownership changes.
Now after getting versed with the benefits you would like to know how you can register your business as incorporation. We have highlighted several steps which help you to incorporate your business online.
11 Steps Help You to incorporate your business online
- Choose a business name: First of all, you need to choose a name for your business. The name should be fit your business. It should be easy and eye-catching so that people can remember it. However, you need to check with your state’s corporate filling office whether the name you have chosen is available or not. It is better to come with an alternate name in case of unavailability.
- Identify the location: You need to select a state as your headquarters it can be your home state or the state where you would like to have most of your business. There are some things you need to consider before choosing your state such as cost, taxation and corporate laws of that state.
- Select the type of corporation: You need to decide whether you want to incorporate your business as a C Corporation, an S Corp or an LLC. It is better to have words with your tax accountant before choosing the form of incorporation.
- Choose the company directors: Selecting the board of directors is very important. Company directors are responsible for running the corporation and if they are not chosen wisely this won’t be fruitful for your business.
- Select the type of shares: You have to select the type of the shares that your corporation will sell to stockholders. In most cases, corporate prefer to sell their shares to only directors of the company.
- Get your certificate of Incorporation: You will get a certificate of Incorporation from your state’s corporate filing office which will include your company’s name, your business purpose, location and other information.
- Process and File the paperwork: Now the final step comes which includes submitting the articles of incorporation to the state along with the registration fee. You can file your documents yourself or take the help of other incorporation services. Choose the option that suits you and is within your budget.
- Apply for an EIN: As a corporation you need, to apply for your EIN which is a security number. It is used at the time of filing taxes and business documents. Also, you need to open a business account if you don’t have one.
- Documentation of bylaws: This document is necessary for your corporation. It covers how you will run your business like how you will choose a board of directors, where and how the meeting will be held and duties assigned to the board members.
- Business permits and Licenses: Ensure that you have all the permits and licenses to operate your business in your state.
- After approval: Once you get the approval, you can start working as a corporation. At this point, you are eligible for seeking funds from the investors. Furthermore, every year you will be required to submit an Annual report and pay franchise tax fees.