Incorporation Fees Comprise More Than Just Filing Fees

2007-03-08 10:33:40

( Business )



Now that you’re ready to incorporate your business, you have to consider the incorporation fees you’ll have to pay.

If you undertake to prepare and file your own incorporation documents, you will be required only to pay the required incorporation fees. You pay incorporation fees when you file the incorporation documents at the secretary of state’s office. A portion of the incorporation fees are really charges for processing your documents, much like the credit card processing fees that you may pay when applying for a card and loan fees at the closing of a loan.

Incorporation fees vary widely among states, so find out the amount applicable to you. This also depends on the type of entity you wish to form (whether a corporation or a limited liability company). Note well, though, that another portion of the incorporation fees increases in proportion to the number of shares to be issued by your corporation.

In addition to the formal incorporation fees, you may incur charges for postage and shipping of documents. There’s also franchise tax (for doing business in the state) usually due for payment within ninety days after incorporation.

Be aware that preparing and filing the necessary incorporation documents is only one of many steps to be done. After filing incorporation documents and while waiting for the approval, you can proceed to obtain an employer identification number (EIN) from the internal revenue service for taxation purposes.

You have to comply with corporate formalities such as preparing your corporate bylaws, holding the organizational meeting of your directors and shareholders, and opening your bank accounts. You need office space; in this regard, consider a flat fee mls listing to help you find the space you want.

You’ll also need to visit your county and local government office to pay business license fees and tangible property taxes.


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