Are you a new and a small business owner who is wondering on “how do I incorporate”? Then read on to know about incorporation.
Any formation of a legal business structure like corporation or an LLC is referred to as incorporation. Despite the type of corporation you choose you definitely stand to gain a certain extent of protection on your personal assets by law. Incorporation is a huge step in any business, small or big and every business owner faces the inevitable question on how do I incorporate without much hassle. Here we will give you a few pointers on how to incorporate your business as per the state and federal regulations.
How do I incorporate?
- The first factor that you have to determine is the state in which you want to incorporate your business in. The states like Delaware and Nevada offer many tax benefits to the corporations registered with them in comparison to other states. So when you think of “how do I incorporate”, your first step is to decide on the state in which you want to do so.
- The office of the secretary of the state will be able to assist you in terms of the forms that need to be filled and the instructions. Of course, it would be better to take the guidance of a professional tax and legal expert. Nevertheless if you want to do it, you can simply take the guidance of the state office on “how do I incorporate”. But we would suggest hiring an attorney or tax expert who is well versed with the state and federal regulations and who can guide you without any glitch in the said matter.
- As you get ready on “how do I incorporate”, you should start by preparing the Articles of incorporation, which is a form to be filled in by you, preferably with the assistance of an experienced attorney. The form will carry information on the name of your business, contact details, its purpose, and address of the headquarters and so on. After submission with the state, you will be awarded a certificate of incorporation if the Articles of incorporation is accepted.
- By laws creation is the next step when you start on “how do I incorporate”. These laws govern on the roles and responsibilities of each shareholder, officer, the schedule for board meetings, etc.
- Above all, you should also decide on the kind of corporation that you want to form. There are options like LLC, S-corporation and C-corporation to choose from. You can make this decision by considering the pros and cons of each of these entities and evaluating your business requirements. An experienced attorney and tax expert can help you make the right and an informed decision in this regard.
Every form of incorporation will require quite a few documentation and formalities irrespective of whether there will be tax exemptions or not. Having an attorney or a tax advisor who is well versed with the regulations can easily find a simplistic and practical answer to your question on “how do I incorporate?”