There are many solid advantages to incorporating a small business. By choosing to incorporate your online business, you are setting your business apart from all its other factors and allowing it to stand on its own. Incorporation is also long term; you could die tomorrow, and your corporation would live on until forever or until someone else bankrupts the company. Potential clients will be very impressed with the three letters and a period that follow your business’ name. Once you have decided to solidify your business with incorporation there are a few tips you should keep in mind.
Figure out Where
You get to be in control when deciding where to establish the legal body of your incorporated online business. Each state has a unique incorporation process. Some require less paperwork than others, and some are cheaper than others. For instance, Nevada is a popular location to choose currently because of its incorporation perks. However, now you would have to compete with every other business who picked Nevada plus deal with your original state’s requirements.
In essence, you really want to stay in your home state to incorporate unless you have an extenuating reason that makes another state a better choice for you. The most important step in learning how to incorporate your online business after selecting your business name is registering it in the right place for you. Do your research before coming to any rash decisions. This process takes time, and you need to be thorough.
Keep Up with Your Paperwork
This is the most important fact of successful business incorporation. With the “Inc.” comes large amounts of paperwork, different tax status papers, attorney fee if applicable, annual fees, and state filing fees. To be fair, not every business is large enough to handle the massive paperwork changes involved in incorporating. There are so many advantages to doing so, but incorporation is not for every business.
Decide on the Attorney
The beautiful thing about this process is that you do not particularly need an attorney. If you, however, find legal language intimidating and want to make sure you are doing things correctly, there are many attorneys available in every state that can help you incorporate. Be wary of sites that say they can interpret everything for you. Incorporation is a complex process with a fair bit of paperwork involved, and you want to make sure you stay involved in the process. Always know what is going on with your online business.
If you pick the right state to incorporate in, closely monitor the paperwork, and hire any legal help you may need, you will have a much smoother process incorporating your online business. Once you have become a truly independent body in the eyes of the law, your business will have completely different status in regard to taxes and liability. The main downside to incorporation is all of the paperwork, so get started and stay organized; you will be glad you did.