Taking the necessary steps to incorporate your business can be very beneficial to everyone. Corporations exist as a separate entity from the owners. It has its own debts, liabilities, losses, and other misfortunes that do not affect the owners. Along with anonymity, the board of directors, that make all of the business decisions, controls a corporation. Corporations can exists forever and add credibility to your business’s name. With all of these great advantages, it is no wonder that so many companies decide to incorporate.
The actual process of incorporation, however, can be very tedious, involving a lot of paperwork and high fees. While a single person could complete all of these steps on their own, many companies seek the help of incorporation services. These companies take the pain out of completing all that paperwork and paying fees. Though you could speak to an attorney about the process of incorporation, you do not want to have to spend more money on attorney’s fees.
Selecting A New Corporation Name
To prepare for your company’s new incorporation, you should get certain essential information beforehand. To begin with, you should decide on your company’s name. You will need a new name in order to incorporate. Make sure the name you choose is original and is not in use. Incorporation services can help with this. They will do extensive preliminary name check once you have several names in mind. Your corporation name must also include an appropriate ending. You can choose from the following: Incorporation, Inc., Corporation, Company, Co., Limited, or LTD. It does not matter which one you choose. Whichever ending sounds best with your company’s name is the right choice.
Incorporation Requirements
Incorporation services will tell you that you will also have to name new members of your company in order to incorporate. As mentioned before, you have to have a board of directors. This is not optional and is required by the laws of forming a corporation. You will also need shareholders. Yet another very important member of your corporation will be the registered agent. This employee is in charge of receiving and sending legal documents on behalf of your corporation. In order to legally incorporate your company, your registered agent must reside on the same state you choose to do business in. You can act as your own agent or you can hire someone. Some incorporation services can provide you with an agent that resides in your state.
The Costs of Incorporation
Incorporating your company is going to cost some money. Not only will you have to pay incorporating fees but you will also have to pay for the incorporation services. Start of with incorporating your company in just one state, which will be the state in which you conduct business. You could pay as much as $395 (like in Massachusetts or Texas) or as little as $150 (like in Mississippi or Missouri) in order to incorporate. Trying to incorporate in more than one state is very costly and troublesome. Not only are you paying incorporation costs but also registered agent fees. If you do not serve as the agent, you will have to hire someone for the position. Some incorporation services companies will provide you with one for a fee. Then again, there are other companies that charge a fee if you do not use the agent they provide. Make sure the company you choose does not charge you for services you do not need.
By Tamara C. Jude