Incorporate Today : Q&A for a Successful Incorporation
Should I incorporate?
Nearly all businesses should incorporate (or use some kind of business strategy to provide asset protection). Alternative forms of business such as sole proprietorships or partnerships do not provide the additional legal protection, tax advantages and liability prevention of a corporation.
Can I incorporate online?
Yes, there are several sites where you can incorporate online. Check pricing as fees can vary widely between providers.
Can I incorporate in any state?
Yes. Delaware and Nevada are two popular states for businesses which incorporate in another state. Wyoming is also becoming a popular choice for savvy business owners.
Why should I incorporate in Nevada?
The state of Nevada provides the following reasons why you should incorporate in Nevada.
- No corporate income tax
- No taxes on corporate shares
- No franchise tax
- No personal income tax
- No I.R.S. information sharing agreement
- Nominal annual fees
- Minimal reporting and disclosure requirements and
- Stockholders are not public record.
Why would I incorporate in Wyoming?
- Easy to move your existing corporation, which is not an option for a Nevada company
- Allows bearer shares, lifetime proxies and appointment of nominee officers, which allows accountants to provide anonymous cover for business owners
- Strong business asset protection laws
- No corporate state taxes
- Less state fees (can be up to 75% less than Nevada)
Why would I incorporate in Delaware?
Delaware is also a bellweather choice because
- State laws and the state's history are pro-business and
- State-of-the-art filing systems even allow for electronic filing by some registered agents
How do I incorporate?
Start by researching your company name. Check with your secretary of state's office to determine if the name has already been used. In addition, you will want to verify that your business name has not been used elsewhere by using search engines and the trademark office for the U.S. government (you will also want to verify that a .com domain name is available for your proposed name).
Who can incorporate your business?
Anyone can form a corporation as long as the appropriate paperwork is filed and the filing fees are paid.
Can I incorporate without an attorney?
Yes, as long as you include the appropriate language in your incorporation documents. You can either prepare and file the paperwork yourself or use a preparation service.
What is an incorporation kit?
An incorporation kit often includes the articles of incorporation, the certification of incorporation and any additional paperwork you may need (such as bylaws and resolutions). Some firms also register for a tax identification number for you with the IRS.
What does it cost to incorporate?
Generally, incorporation starts around $150 and goes up from there. You must pay filing fees with the state and then any additional fees from the company which assists you with the filing. Be sure to check whether you receive any statutory agent's fees with your incorporation.
Depending upon the state in which you incorporate, you may also have yearly filing and registration fees. You may also need to submit annual reports to the secretary of state's office.