A Simple and
Easy Guide
to Online Business Incorporation for Small Business Owners
Starting a small business is exciting and fulfilling. But it can also be stressful and overwhelming. If you want to turn your business into a corporation, make things easier by getting expert help and advice with the paperwork and filing. Here’s a guide so you won’t have to jump through hoops to establish a small business.
What is Business Incorporation?
Business incorporation is registering your business as a separate entity from yourself. The legal process protects your personal assets if your business encounters any legal or financial hardships. The different types of business entities include sole proprietorships, corporations, partnerships and LLCs. Incorporating your business allows you to look forward to several benefits, including:
Protect personal assets from business liabilities
Enhance your professionalism
Build trust and credibility
Simplify tax filing
Reduce tax liability
Attract investors
Access funding opportunities
Step 1: Determine the Business Type
Determine your business entity type. The most common types of business entities are:
Sole Proprietorship is when you own the business and are personally responsible for all liabilities.
Partnership is when you own the business along with a partner or partners who share the profits and liabilities with you.
Limited Liability Company (LLC) is when the business enjoys the liability protection of a corporation but with a partnership’s tax perks.
Corporation is when the business is a separate legal entity from the owners and shareholders.
Understand the pros and cons of each option. Research, so you can choose the option that suits your business needs the most.
Step 2: Choose the Incorporation State
Choose a state where you will incorporate your business. Many small business owners incorporate their business in their home state. But you can also choose other states. Some have favourable tax laws. Others have more business-friendly laws and regulations. Consider your options before you select a state.
Step 3: Choose a Corporation Filing Service
For convenience, you can do a business incorporation online. Incorporating your business online is easier and faster than filing paperwork yourself. A corporation filing service can help you navigate the legal and financial requirements of incorporation, file the necessary paperwork, and obtain the necessary permits and licenses.
Step 4: Prepare and File Your Incorporation Documents
Provide the company filling service with the necessary information to prepare and file your incorporation documents, including
The name of your business and registered agent
The business entity type and state of incorporation
The purpose and activities of your organization
The number of authorized shares of stock
The company’s bylaws and operating agreement
An excellent corporation filing service will guide you through the process, so you can see how to prepare and file these documents. That ensures your compliance with all legal requirements.
Step
Obtain additional permits and licenses. These will depend on your location and the activities you’re involved in, and the products or services you offer. You may be required to obtain state and local business licenses, tax registration, and industry-specific permits, just to name a few.