| Having a self-sufficient business is probably one of the | | | | the business to develop, grow and bring in more funds. |
| most common of dreams. Even more so incorporating | | | | When you incorporate your small business, you are not |
| small businesses into big businesses with larger | | | | only able to borrow as a corporation, but you can also |
| perspectives and larger visions. | | | | sell shares and raise equity capital. |
| If you have a small business there comes a point in | | | | If the key benefits of incorporating are in line with your |
| time when you will need to make a decision on | | | | companies goals you can begin the process of |
| whether or not you need to incorporate. | | | | incorporation.o The first step to incorporation is to |
| Almost every small business starts as a proprietorship | | | | choose a corporate name and have a proper |
| or a partnership and as they grow they ponder over | | | | business address. You can not run corporation out of |
| the idea of incorporating. | | | | home unlike with a sole proprietorship.o Secondly, you |
| One of the primary advantages of incorporating your | | | | need to select the state in which you will be |
| business is that it offers limited liability. If a business is | | | | incorporating. Your home state may not be the best |
| under a sole proprietorship the liability of the business is | | | | state for incorporation. You should Chose the state |
| the responsibility of the proprietor. When the same | | | | that will derive maximum benefit.o Thirdly, you need to |
| business is incorporated, the responsibility will depend | | | | select the type of corporation that will most benefit |
| on the amount of stake or share in the company. | | | | your company. Speak with your accountant, business |
| Another salient feature of incorporation is that if you | | | | consultant and/or legal consultant to determine what |
| have a debt under the name of the corporation you | | | | type of entity will be the best for your business. It may |
| as an individual will not be held responsible for it. With a | | | | be a LLC, an S corporation or maybe a C |
| proprietorship or partnership, a similar debt would have | | | | corporation.o The next process is to choose the type |
| resulted in the seizing of your assets. | | | | of share. As a corporation, you can issue common |
| The second most important advantage of | | | | stock as well as preferred stock.o Next, you will need |
| incorporating your small business is continuance. In | | | | to obtain a Certificate of Incorporation, which is |
| comparison to a sole proprietorship a corporation has | | | | normally available with the Secretary of State's |
| a larger life span. In fact legally it has an infinite life | | | | office.o Lastly, you need to process and file your |
| span. | | | | incorporation documents. This process can be taken |
| If the company shareholders leave the company, die | | | | care of by a registered agent or an attorney. |
| or if the ownership changes. A corporation will always | | | | Once you are incorporated make periodic |
| exist. | | | | appointments with your resident agent to ensure your |
| Business is driven by capital and as a corporation it is | | | | corporation is in compliance with the secretary of |
| easier to raise capital. Influx of capital or funds will help | | | | state. |