How to Incorporate / Even if the business involves only yourself or your family.

The how-to's, Pro's, Con's of incorporating a small business or organization.

Instructions

Difficulty: Moderately Challenging

1. Incorporating has it's advantages and disadvantages. If you plan on starting your own business you may want to incorporate it, even if the business involves only yourself or your family.
2. One advantage of incorporating is that your liability is limited to the amount you invested in the corporation. If your business goes under or is sued, your home and personal property cannot be touched, as it can in a partnership or other unincorporated business. Also, you can withdraw from a corporation by selling your stock.
3. A corporation can also defer tax payments, spread its taxable income over several family members, and provide fridge benefits like pensions and insurance as a business cost.
4. Some of the disadvantages of incorporating are; corporate profits are taxed, and so is your income from a corporation.
   A Corporation must receive permission to operate in other states, pay additional fees, and also observe each state's regulations.
   A Corporation has to keep specific records and file numerous reports in each state where it does business.
5. A list of some of the steps you will take when forming a corporation include filing articles of incorporation with the State secretary of State, giving the name of your corporation, how long you want your corporation to continue, names and addresses of the incorporates, the phone number, its purpose, and its location. There is also a filing fee.
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Tips & Warnings

• You may want to incorporate a society or organization that you may belong to in order to keep its financial involvements apart from those of its members.
• Attorneys that practice corporate work are usually expensive.