If you’re someone who has started off with a small business of your own, the foremost thing that you would require deciding is how you would structure it. Every structure has got its own set of advantages and disadvantages the format that is best for your business will depend on the specific needs and business location. In case you’re not sure about the structure that is best for you, you have to go through the pros and cons of the Small Business Administration website where such things are given in detail.
Nevertheless, if you’re planning to incorporate online and you think a corporation is the best option for you, here we are going to tell you about the benefits of starting a corporation. You should consult an attorney or an accountant in case you have questions regarding the process. Let’s check out the few baby steps that you need to take in order to incorporate a business online.
#1: Select the name of your business
The foremost step that you need to take is to select the name for your business. If you have to keep a perfect name for your business, it should fit in with what you do or what you have to offer. Your audience should be able to relate to the types of product that you deal with and it has to be something which people remember and understand. Once you create the name of your business, check the corporate filing office of the state and also with the state and federal trademark registrars.
#2: Recognize the best location for the business
The next step is that you have to choose a state which is going to be the best location for the office. It doesn’t have to be in the place where you stay or where you plan to perform the major part of your business. But sticking to the home state can alleviate the stress of the process. Take into account the cost to incorporation, corporate laws and taxation policies.
#3: Choose the legal entity for your corporation
Next it is time for you to decide on the kind of corporation you will form. Few of the most common legal entities to choose from are S Corporation, C Corporation and LLC. Each of them has their own set of pros and cons and hence you should explore the definitions of each type and in case there’s a doubt, you should also consult a tax accountant for advice.
#4: List down the company directors
Once you’re done, you have to choose the directors. A corporation needs a board of directors who are responsible for operating the corporation. Remember that it is important to choose the best directors as their decisions will have an impact on the way your business runs.
The final step is to file the ‘articles of incorporation’ with your state and pay the required fee for registration. Select the option which seems to be comfortable and the one which works according to your budget.
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