Secure your corporate name, file the necessary documentation and pay the necessary filing fees. These are the three easy steps needed in business incorporation services.
In business incorporation services, you have a choice on how to go about the process of incorporating your business. You can complete the
steps yourself, use an incorporation service provider or have an attorney complete them for you. That easy.
Doing it yourself.
If you decide to incorporate on your own, you need to be knowledgeable in the laws of the state of incorporation. You need to prepare and file your own documentation and undertake all communications with the necessary state agencies.
Using an incorporation service provider.
If you use an incorporation service company, you submit the necessary information. The company will then check your name, prepare and file your documents and pay the initial state filing fees on your behalf.
Incorporation service companies charge a nominal service fee on top of the state filing fees. You can submit all the necessary information to them over the Internet.
Using an attorney.
Attorneys will also undertake all of the necessary steps for you. If you use an attorney to incorporate, expect to pay their hourly fee besides the state filing fees.
How long the process will take will depend on the time the state requires to approve and return your completed Articles of Incorporation.
These things vary by state. But on the average, it usually takes four to six weeks to become incorporated.
Most states will allow you to speed up the filing process for an additional charge. The charges also vary by state. Expediting filings normally takes about one week.
After the corporation is created, an organizational meeting of directors must be held. At this meeting bylaws are adopted, stock is issued and the incorporation process is completed. Minutes of the organizational meeting should be kept in a corporate record book.
Incorporation is an important step in the existence of a business. Unfortunately the true value of incorporating a business is often not seen until the business faces a negative situation such as a law suit or bankruptcy.
What are the advantages of business incorporation services?
1. Limited liability in the corporate entity is afforded to the "owners", or the shareholders.
2. The corporation is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest, the corporation will continue to exist and do business.
3. Retirement funds and qualified retirement plans can be set up more easily with a corporation.
4. Ownership of a corporation can be transferred easily.
5. Capitals are raised quickly through the sale of stock.
6. A corporation has centralized management.
What are the disadvantages?
1. The primary disadvantage to a corporation is double taxation. Profits of a corporation are taxed twice when the profits are distributed to shareholders as dividends. They are taxed first as income to the corporation, then as income to the shareholder.
2. There is a level of complexity and expense of forming a corporation.
3. Corporations have extensive record keeping requirements.
4. Operating a corporation across state lines requires the corporation to qualify to do business in the other state.
Small business owners who are planning to incorporate and understand the benefits of incorporation should assess the types of business incorporation services that they can expect to receive from the company they are dealing with.
These small businesses understand the need for business incorporation services. However they have failed to take the steps to file their company as an incorporated company.
Small business owners do not take advantage of business incorporation services for a number of reasons. Some do not have the time, while others are afraid it will just cost too much. Still some people procrastinate and plan to get to it sometime.
There are many companies providing business incorporation services that also include consultation and discussion about these risks and the benefits of incorporation.
