Information on Incorporating a Business
Although regulations vary by state, the basic information needed to incorporate a business remains universal across the United States. Becoming a corporation is a valuable tool in any professional business and provides a number of benefits, including reduced tax liability, legal protection and eligibility for business credit and banking tools. Because of the Internet, it has become easier for entrepreneurs to incorporate their businesses without needing an attorney.
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Corporate Name
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To incorporate, you must come up with a business name that ends in "Corporation" or "Incorporated." Each state has an online or telephone method to let you know if your desired corporate name is available.
Articles of Incorporation
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Each state requires you to fill out an articles of incorporation document, which provides basic information such as the purpose of the company and whether it is a stockholding or non-stockholding firm.
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Lifetime
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A successful corporation can exist as a legal entity beyond the lifetime of any of its original owners.
Cost
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The cost of incorporating non-stockholding corporations usually is under $200, depending on the state. Stockholding corporations may cost more depending on the nature of the business and number of shares available. Each state provides specific guidelines on required charges.
Legal Protection
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A corporation is legally a separate entity from any owner or shareholder, which makes it easier for people to do honest business transactions without fearing personal financial ruin. It is almost impossible for an honest business owner to be personally sued or held accountable in the event of business problems of a corporation.
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