Secures Business Registration
Benefits of Starting Your Own Corporation. CLICK HERE to register your Corporation.
•Liability: A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner. Any business with potential for lawsuits should consult with a lawyer and consider incorporation. Incorporating will offer an added layer of protection but it is still advisable to obtain business liability insurance.
•The bad debts will often be the responsibility of the corporation. In the case of bank financing, more and more banks require business owners to sign a personal guarantee; making your personal assets collectible on a defaulted loan. Consider your options before signing.
•Taxation: Another main benefit to incorporating is the taxation of a company. Corporations are often taxed at a lower rate and have better taxable benefits. Talk to your accountant about the tax advantages.
•Raising Money: Financing a small business as a sole proprietorship or partnership can be difficult. A corporation can sell shares of the company and raise money easier than other business structure types.
•Selling the Business: A non-corporate business is hard to valuate properly. A business corporation value will be based on the business, not the owner, therefore making it easy to sell the company.
7 Steps to Start Your Own Corporation
1: Choose a Corporate Name & Address: Have a corporate name search performed to ensure you are unique and have no trademark problems in the future.
2: Select A State to Incorporate: Setting up a corporation will be easier and cheaper in your home state than out of state.
3: Select A Corporation Type: Determine the best type of corporation for your business--LLC, S corporation or C corporation.
4: Determine Company Directors: Directors of the company and positions will have to be filed within the Articles of Incorporation and By-laws.
5: Choose Your Share Type: Corporations can issue common and preferred stock. Select the best for your situation.
6: Obtain Certificate of Incorporation: Available from local State office or business retailer.
7: Process & File Incorporation: Your incorporation can be completed by a lawyer or a do-it-yourself kit. Finally, file your incorporation with a Registered Agent.
The decision to incorporate or not is an important one. Work with your advisors to determine if the time is right for you. Don't wait until it's too late.