Business OnRamp » Incorporating Services http://www.businessonramp.com Start your business! Tue, 27 Apr 2010 00:17:39 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 How to Use Incorporating Services to Start a Web Business http://www.businessonramp.com/how-to-use-incorporating-services-to-start-a-web-business/ http://www.businessonramp.com/how-to-use-incorporating-services-to-start-a-web-business/#comments Tue, 27 Apr 2010 00:09:52 +0000 jashall http://www.businessonramp.com/?p=74 As an aspiring web business owner, you want to make sure your business is built to last. One of the very first steps in the process of formalizing your business is to incorporate the firm. While your business may be at an early stage (perhaps it’s only an idea), incorporating services will help you limit liability, facilitate tax filings and make it easier to conduct business with consumers and other forms. Giving your business a proper foundation through incorporation can ...]]> As an aspiring web business owner, you want to make sure your business is built to last. One of the very first steps in the process of formalizing your business is to incorporate the firm. While your business may be at an early stage (perhaps it’s only an idea), incorporating services will help you limit liability, facilitate tax filings and make it easier to conduct business with consumers and other forms. Giving your business a proper foundation through incorporation can ensure you are protected, whether you choose to organize as an LLC (limited liability company) or corporation (S or C-class) with shareholders. There are a variety of services you can utilize to help ensure you follow the proper protocols for incorporating and organizing your web startup. This guide will walk you through an example case for a web business owner looking to incorporate so you can understand how services might help your decision process.

The Process of Incorporating a Web Startup

While the legal process of using an incorporating service may seem like a formality, the experience can help you better understand your business goals. Therefore, take the opportunity to make sure you fully understand the unique aspects of your business as well as your long term plan rather than just filling out the forms to help a provider register your firm. Working with incorporating services can make it much easier to file since there are formalities, but the basic characteristic questions asked by the filer will help you to conceptualize your business formation goals.

If you’re like many startup owners you only have a broad concept for the business – incorporation is a great opportunity to sharpen that thinking. When you incorporate your business, you do this on the state in which you have an office as well as filing with the IRS for tax purposes. If you’re just starting out you can use your home address or a registered agent, which serves as a placeholder address based upon an agreement.

The first issues when organizing your business is think about ownership, liability and operations aspects of the firm. To start, you should identify whether you are going to be the sole owner or whether you may bring in partners or investors in the future. If you’re a sole owner, then you may want to file as an LLC, which is a pass through entity that allows you to protect your assets while making it easier to organize the firm legally. On the other hand, there are tax and distribution issues to consider if you’re considering taking on new investors. Most states require you to file an Articles of Incorporation as well – an incorporation service can help you determine the structure for these as well as ensuring you file all of the necessary paperwork. To successfully register your business you will need to meet all requirements of the Secretary of State, and incorporating services will double check your filing for completeness and accuracy. In some cases you may want to refer to a business attorney to clarify any particular aspects of incorporating, while incorporating services can provide a base level of organization for your firm.

]]> http://www.businessonramp.com/how-to-use-incorporating-services-to-start-a-web-business/feed/ 0 Incorporating Services http://www.businessonramp.com/incorporating-services/ http://www.businessonramp.com/incorporating-services/#comments Mon, 26 Apr 2010 23:27:37 +0000 jashall http://www.businessonramp.com/?p=59 Why hire a professional

When starting a business, you will find that it can be very difficult.  One of the best ways to handle this stressful process is to hire a professional to walk you through it.  It is suggested to hire a lawyer with years of experience in business incorporation to handle this for you.  A lawyer will have the experience needed to handle the filling as well as the knowledge to teach you which kind of company you should ...]]> Why hire a professional

When starting a business, you will find that it can be very difficult.  One of the best ways to handle this stressful process is to hire a professional to walk you through it.  It is suggested to hire a lawyer with years of experience in business incorporation to handle this for you.  A lawyer will have the experience needed to handle the filling as well as the knowledge to teach you which kind of company you should start.

Another option is hiring an incorporator.  This person does not need to be a lawyer, but they should have knowledge of incorporating companies in your state.  They will be responsible for filing the Articles of Incorporation with the state in which the corporation is registering.  You have many options for where you can incorporate.  Each state has different laws.  You might not want to file in the state you live in because of higher taxes. Many companies choose to incorporate in Delaware because of their taxes laws.  

Types of corporations

There are two types of corporation, stock corporations and non-stock corporations.  Most for-profit companies choose to be Stock Corporation because they are able to sell stock whenever they need extra funds.  Non-stock corporations are usually nonprofit organizations.  If you are starting an online store, you will usually be starting a stock corporation.  This will allow you use all the benefits of a corporation including tax benefits, protection of personal assets and raising funds through sale of stock.

How to choose an incorporation service

Location – Finding a local service will be best because every state has its own requirements for corporations.  Also, a local incorporation service is very useful because you will be able to have a one-on-one consultation and ask any questions you might. 

Cost – Finding a company that services fit into your budget is key, but it should not be the only factor.  If the service provider is able to meet all your needs and costs a little more than its competitors, it might be for a good reason.

Referrals – Start the process by asking other business owners in your area who helped them with their incorporations.   A good referral is important because the service provider will try to maintain their relationship with referrer by providing you with the best services possible. 

Alternatives

There are many incorporation kits you can purchase that will walk you through the entire process.  They are very helpful and costs effective.  However, it will take some time as well as some studying to finish the packet.  Most people tend to never finish these packets.  If you do not have the time to handle this process on your own, it would be best to hire a law firm or incorporator to handle this for you.

Hiring an incorporation company will allow you to focus on your product by handling all the paperwork for you.  Some providers will even help you put together a board of directors for your company.  Finding a business incorporation service from referrals that fits your budget and understands the laws of your state is best for new business owner.

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