Incorporating Your Business Using Three Simple Steps
by: Abe Cherian
Incorporating your business today is much easier than it was 10 or even 20 years ago. Here's three steps; securing
your corporate name, filing the necessary documentation and
paying the necessary filing fees. You can complete these steps
yourself, use an incorporation service provider or have an
attorney complete them for you.
When incorporating, you must first ensure that your corporate name is available in the state in which you want to incorporate. Your corporate name must not be deceptively similar to a name that is already in use in that state. A name check must be performed in the state of incorporation.
You must also prepare and file all the necessary documentation. the Articles of Incorporation, with the appropriate state agency in the state of incorporation.
Additionally, you must pay all state filing fees, initial franchise taxes and any other initial fees. Each state charges a filing fee to form your corporation in that state. These state filing fees vary greatly by state. They range from under $100 to over $400.
Do It Yourself. Use An Incorporation Service Provider Or Use An Attorney. If you decide to incorporate on your own, you need to be well versed in the laws of the state of incorporation. You will need to prepare and file your own documentation and undertake all communications with the necessary state agencies.
If you use an incorporation service company, you submit the necessary information, and the company checks your name, prepares and files your documents and pays the initial state filing fees on your behalf.
Incorporation service companies charge a nominal service fee on top of the state filing fees, and you can submit all the necessary information to them over the Internet. Attorneys will also undertake all of the necessary steps for you. If you use an attorney to incorporate, you can expect to pay their hourly fee on top of the state filing fees.
How long this will take depends on the time the state requires to approve and return your completed Articles of Incorporation varies by state. On average, it takes 4-6 weeks to become incorporated.
Most states will allow you to expedite the filing process for an additional charge. Expediting filings typically take about 1 week. Those charges also vary by state.
After your corporation is formed, an organizational meeting of directors must be held. At this meeting bylaws are adopted, stock is issued and the incorporation process is completed. Minutes of the organizational meeting should be kept in a corporate record book.
Incorporation is an important step in the life of a business, but unfortunately the true value of incorporating a business is often not seen until the business faces a negative situation such as a law suit or bankruptcy. A primary advantage of incorporation is the limited liability the corporate entity affords its shareholders "The Owners".
Typically, shareholders are not liable for the debts and obligations of the corporation. Creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business.
Other Advantages include
- A corporation's life is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest the corporation will continue to exist and do business.
- Retirement funds and qualified retirement plans "like 401k" may be set up more easily with a corporation.
- Ownership of a corporation is easily transferable.
- Capital can be raised more easily through the sale of stock.
- A corporation possesses centralized management.
Corporations are not without disadvantages. The primary disadvantage to a corporation is double taxation. Profits of a corporation are taxed twice when the profits are distributed to shareholders as dividends. They are taxed first as income to the corporation, then as income to the shareholder.
All reasonable business expenses such as salaries are deductions against corporate income and can minimize the double tax. Further, the double tax can be eliminated by making the S corporation election with the Internal Revenue Service.
Other Disadvantages Include
- There is a certain level of complexity and expense of forming a corporation.
- Corporations have extensive record keeping requirements.
- Operating a corporation across state lines requires the corporation to qualify to do business in the other state.
Both the Limited Liability Company "LLC" and "S" corporation also provide the limited liability to the owners/shareholders of the company, without the potential disadvantage of double taxation. While like corporations these two entities also have advantages and disadvantages, it is a good idea to learn about all three when deciding what form your business should take.
Copyright © 2005 Abe Cherian
You may publish this article in your ezine, newsletter on your web site as long as the byline is included and the article is included in it's entirety. I also ask that you activate any html links found in the article and in the byline. Please send a courtesy link or email where you publish to: support@multiplestreammktg.com
About The Author
Abe Cherian is the founder of Multiple Stream Media, a company that helps online businesses find new leads and more customers without spending a fortune. http://www.multiplestreammktg.com
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The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
by: Kenneth Echie
Since I have been using AdSense and getting AdSense Money checks, I have come to learn some useful tips that would help you make money with AdSense. These tips, along with the systems in my e-book, helped me increase my AdSense income by 560%. If you are starting, check out these tips before you start using AdSense. If you?re already using AdSense, incorporate these tips into your AdSense program and see your income soar.
This is part 3 of 3 of these tips. You can get the other parts at my website: http://www.extra-income-ideas.com/articles.html or in my AdSense Money E-Book: http://www.bye925.com/adm.
Making Money with AdSense -- Tip #7:
Think about segmenting your sites: making some pages for high search engine traffic,...
The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
Incorporate > The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
Form vs. Function (Which shall prevail?)
Form vs. Function (Which shall prevail?)
by: Maricon Williams
Form and function is both vital to a web design. Form is one base and function is another. Function without form is boring.
Nonetheless, even if the form is impressive yet not functional it will be disappointing. Thus, there must be a symbiotic relationship between the two in order to give life to the site.
If a site is more of a marketing tool, it must incorporate visual and multimedia images to keep its form accurate. On the other hand, it must also offer helpful content in order to convey its marketability purpose.
The first thing that designers must do is to attain a good balance. In other words, function must first be known before its form can be developed. The equilibrium is always hard to achieve. In fact, some web designers are spending several years in order to perfect the form and function.
Equilibrium between balance and form is a must. However, the...
Form vs. Function (Which shall prevail?)
Incorporate > Form vs. Function (Which shall prevail?)
Cruising To Alaska - A Trip To Remember
Cruising To Alaska - A Trip To Remember
by: Ron Richards
Visiting Alaska by cruise ship has become one of the most popular ways to experience Alaska's breathtaking beauty and diverse culture. Cruises incorporate all that Alaska has to offer including glaciers, wildlife, exotic ports of call, entertainment and fine dining.
Some of the most popular Alaskan cruises are glacier cruises. Much of the Alaskan terrain consists of gorgeous, formidable glaciers and ice fields which cover over 5% of Alaska's land surface. This natural beauty can be seen from many top tourist destinations of Alaska including Juneau, Valdez, Seward and the Matanuska Valley, but is usually only fully appreciated with an up close and personal view that only a cruise can afford. From this vantage point you will stand spellbound by tidewater glaciers that reach over 100 ft. in height and the antics of wildlife such as humpback whales, orcas, sea lions, dolphins, brown bears...
Cruising To Alaska - A Trip To Remember
Incorporate > Cruising To Alaska - A Trip To Remember
Three Excellent Ways To Turbo Charge Your Sales Presentations
Three Excellent Ways To Turbo Charge Your Sales Presentations
by: Kyle Varner
As a Clinical Hypnotherapist, I have helped many salesmen go from average to excellent. Sales is all about the subconscious mind. When I was in high school, I sold Kirby vacuum cleaners door to door, and I noticed something very interesting: everyone had the same basic sales presentation, and yet some of us (like me!) were making excellent money, and others were making next to nothing. What is the difference?
The Devil is in the Details
The details of our sales presentations were the only things that differed?and sometimes those details are minute?even undetectable. They might occur on the subconscious level or the salesman, or they might be things that the salesman consciously does in order to influence the subconscious mind of their prospective client. The point is that, if you have a proven sales presentation, the difference between being excellent and being...
Three Excellent Ways To Turbo Charge Your Sales Presentations
Incorporate > Three Excellent Ways To Turbo Charge Your Sales Presentations