Choosing to Incorporate for Small Businesses

For the novice business owner getting incorporatedbeen incorporated we could have saved them tens of
seems like an endless stream of red tape, forms andthousands of dollars in most cases.
complications. How to get incorporated is one questionOnce that initial decision has been reached these
that they simply have too many doubts about and toosame experts can provide all of the answers required
few answers to be able to make an educatedas to how to get incorporated. This will include
decision. Luckily there are an army of consultants,assistance with the filing of articles of incorporation
lawyers, and accountants out there who can helpwhich can be registered with the state in which the
provide the answers to how to get incorporated andbusiness may wish to operate, or in other more
most of them for a minimum fee would be happy tobusiness friendly states like Delaware or Nevada who
assist.encourage non resident incorporation by individuals
The first question to answer is not how to getoutside of the state.
incorporated, it is should the business be registered asA Corporation has three distinct groups associated
a corporation in the first place. My belief is yes. Unlesswith the entity; officers, directors, and shareholders of
you are a really small company, less than $25,000 inthe corporation. In filing for incorporation most states
annual sales, no employees, working from your homerequire the names and addresses of these groups of
and the products or services you sell have very limitedthe corporation, at least the primary officers and
liability exposure, you should be incorporated.majority shareholders.
Any good accountant or business lawyer can help aThere are also a number of other requirements that
business determine very quickly whether incorporationhave to be met in order for a business to be
is the best business model to pursue. Finding a goodincorporated and these include the payment of all
accountant or business lawyer may be difficultapplicable fees, taxes and levies of the state in which
however. In my experience there are severalthe business may be incorporated. There are no easy
accountants and lawyers that will tell their client not toanswers to the question of how to incorporate a
incorporate, with no real reason or explanation, when inbusiness but there are great resources out there to
fact they should have been. There are severalhelp every business navigate their way through the
instances I have worked with business owners runningsystem and make the best possible choice for their
as a sole proprietorship for the last three years. Justbusiness interests.
looking at the previous year in business if they had