Many businesses consider incorporating for a variety of reasons. One reason may be for employee benefits. Offering “perks” like health insurance and a retirement plan are great incentives for employees, especially since a lot of businesses that aren’t incorporated don’t offer these plans. Another advantage of incorporating is the great tax breaks that your business will get. There are tax deductions for your employee incentives and travel expenses. Also, many customers and fellow business owners will respect your decision to incorporate. To some, incorporation makes businesses seem more professional, thus generating more businesses for your venture.
When you decide to incorporate, you need to take such steps as picking out a company name and filling out incorporation papers. Usually, you have to go to your local state capital and have the necessary paperwork filed. This will probably take longer than expected.
If you incorporate online, it eliminates most of the problems for you. Websites offer to help you incorporate, for a fee of course. There are some websites that allow you to do almost everything online. One website even checks registered company names to see if your first choice is already taken. This is a very useful tool because it can save you the stress of unwittingly thinking of company names that have already been chosen. It is law that no two companies in the same state shall have the exact same company name.
Many businesses incorporate online because applying online is so fast. Filling out an online application usually takes minutes. Recognition of incorporation may take as little as two days. The paperwork is sent back to you in less than two weeks. Because the process is so fast, you should already have your board of directors on board.
What if you lived hours away from your state capital? Imagine driving for three hours just to find out that the offices that handle incorporation is closed for the day. If you incorporate online, it could save you hours of your precious time, and gas money.
There are some websites that also provide specialized state information for incorporation. For example, there is a website dedicated to detailing the advantages of incorporating in Delaware. In Delaware, there is no minimum account balance for a company to have. In other states, law requires a company to have at least $1,000 in the bank. As you can see, different states have varying guidelines, so be sure to research the state in which you choose to incorporate.
When you decide to incorporate online, there will be a service charge. Some websites charge $45, while some services are as cheap as $25. This charge is in addition to costs that the state charges. But don’t be hesitant. Think of all the services that this one website provides for you.
Before you sign up for a service, you need to find out if the company is legitimate. Remember, if it sounds too good to be true, it probably is. You should also watch out for hidden fees. Many websites lead you to believe that the service only costs a few dollars, but they may add extra charges.
By Michelle Presbury