How To Incorporate Your Business

2007-03-08 10:33:40

( Business )



If you want to incorporate your business, you will have to follow certain procedures. From the outset, you should prepare yourself to spend some time and money to make it happen. However, consider these costs as a form of investment; they will most certainly make your business more viable in the long run.

In the old days, the only way to learn how to incorporate your business was through consulting an attorney. Nowadays, there are many alternatives available. Consulting a competent lawyer is still quite a good option, but it is no longer the only one available to you. It is not even legally required for you to have a lawyer throughout the process. Many companies now offer you assistance throughout the entire incorporation process. A search engine will help you find these on the internet.

To incorporate your business, the first step is to prepare your articles of incorporation. Articles of incorporation are also known as charters or certificates of incorporation; they are the documents that you need to file with the proper local authorities. Your local officials can also help you learn how to incorporate your business. Once the documents have been completed, submitted, and all relevant fees paid, your business will officially become a corporation. Before this happens though, certain details will have to be taken care of.

You will need to have a federal tax identification number, also known as an employee identification number (EIN). It is the number that revenue services use to identify businesses, and it must be included in all the tax filings a business makes. Some states will go a step further and also require a state identification number. If you have been operating your business as a single proprietorship or partnership, you may already have an EIN; but you will need to obtain a new one for new corporation.

You will also have to decide on what type of corporation you want. There are several types available such as C-corporations, S-corporations, and LLCs. All of them have their own advantages and disadvantages. Before you decide to incorporate your business, make sure you conduct a little research. Consult professionals such as lawyers and accountants if necessary. They can also offer you more advice on how to incorporate your business. You will want to choose the type of corporation that best suits your business needs.


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