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Incorporation

How to Incorporate a Business

How to Incorporate a Business

 


When establishing a business or company, one specific undertaking that is almost always recommended is to incorporate the business. Incorporating a business can prove to have its advantages, usually in the form of protecting the personal assets of the owner or shareholders, as well as taxation benefits. Incorporating a business will tend to provide benefits to all kinds of companies and businesses, regardless if it is a small business or an international company.

Incorporating a business, regardless of the size of the company, will prove to be a similar process for both in the United States. However, obtaining a certificate of incorporation will differ from state to state in terms of the actual procedure. It is important to be aware of the necessary steps for incorporating a business in a particular state so as to prepare the necessary documents and information in order to have a smooth process.


Things to consider before submitting the appropriate paperwork for incorporating a business is appointing a board of directors, usually three positions, stock availability and cost, and corporation name. The application for registration can then be filed with the Secretary of State's office. Upon receiving notice, one must prepare the Articles of Incorporation for the business or company.


Though it is not necessary in the drafting of the Articles, it may be wise to employ the help of an attorney for this particular process. Barring any missing information, the Secretary of State will then send a Certificate of Incorporation which must be signed by the owner and stockholders. Lastly, a stockholder's meeting should be held after receiving the charter from the State, as well as adopting corporate bylaws and election of board of directors.

 

Why do Incorporation Services Exist?

Why do Incorporation Services Exist?

Incorporating
a business or company is usually considered to be a fairly simple task.
However, a certain aspect that is not considered may be the amount of time that
it may actually take to be considered an incorporated business under the law.
Furthermore, if the business owner or stockholders are concerned with the
internal workings of the business or company, incorporating a business can
prove to be more tedious than originally anticipated.

Incorporation services exist solely to help
aspiring businesses and/or companies become corporations. Incorporation
services will help a business owner or shareholders through the incorporation
process, helping compile the necessary information and assisting in the
organization and submission of applications.

Incorporating
companies may be a simple procedure for many, but business owners may simply
not have the time at their disposal to cover the entire process, thus making
incorporation services a great option. Furthermore, incorporation services will
know all of the necessary requirements for each state, as well as any specific
laws and regulations, making incorporating companies a much easier task.

Incorporation services are usually available
online, which is yet another method of incorporating companies. Furthermore,
for those owners and shareholders with a more “do-it-yourself”
attitude, the option to incorporate online for themselves is also viable. This
will entail visiting the appropriate Secretary of State’s website and looking
over the necessary literature to become aware of all of the requirements
regarding the incorporating of companies and businesses.

What are the Articles of Incorporation?

What are the Articles of Incorporation?

The
Articles of Incorporation are an important factor in the process of
incorporating a business or company. It is the sole document that is submitted
to the proper State office and is usually the last step in the incorporation
process. In a way, the Articles of Incorporation can be seen as a formal and
legal application to the State to review whether or not such a business can be
properly incorporated. The Articles of Incorporation can be a fairly simply
document, though for more complex businesses, it can be a very lengthy and
complex ordeal.

Generally speaking, Articles of Incorporation will
usually require the help of an attorney in order to be properly drafted. In
simple terms, the Articles of Incorporation will consist of information and
details regarding the reason for the company to be incorporated, the location
of the business, the nature of the business, officers, and the set of rules or
regulations detailing how the corporation is meant to work and function. These
facets are covered in three articles.

The
first Article of Incorporation will provide for the description of the
corporation. Article Two states the business or corporation name. Lastly, the
term or length of time in which the business will stay incorporated, which
usually is unlimited, is set forth in Article Three.

However,
the Articles of Incorporation will usually include more Articles stating other
aspects of the business. An example could be an Article of Incorporation in
regards to salaries, or another Article of Incorporation regarding stock issues.

Articles of Organization vs Articles of Incorporation

Articles of Organization vs Articles of Incorporation

In the
world of business, two commonly confused terms are the Articles of
Incorporation and the Articles of Organization. The Articles of Incorporation
are the documents that are submitted by a business or company that is seeking
to become incorporated. The Articles of Organization will refer to the
documents drafted and required to form a limited liability company, or LLC.
However, both the Articles of Organization and the Articles of Incorporation
will prove to be somewhat similar in terms of content.

The
main difference between the two is that they accomplish two different kinds of
business establishments. In certain states, the Articles of Organization will
oftentimes be referred to as a Certificate of Organization in order to avoid
any kind of confusion that may prove to be common between the two terms.

Like the Articles of Incorporation, the Articles
of Organization will typically also require the expertise of an attorney in
order to be properly drafted. Furthermore, similar types of information will
also be included, such as the name of the company and its location, the purpose
for the company or business in becoming an LLC, and a description of of the
nature of the business or company. The Articles of Organization must also
provide the identification of a registered agent, while in the Articles of
Incorporation a list of three officers is required.

Business Incorporation

Business Incorporation

Business incorporation allows for a company or business to be given rights and protection under the law as if such a company were an actual person. Company incorporation helps an established business be protected against several factors, though one of the major ones is liability. Business incorporation is usually something that most companies will seek, particularly those that are considered to be small businesses.
In the United States, there are three types of incorporated businesses. At the time of company incorporation, a business may declare what kind of incorporated business it is to become, as long as it is eligible to do so. Furthermore, when a business becomes incorporated in a particular country, it is subject to the laws of that nation.
In the United States, business incorporation is regulated at the state level, and thus, is subject to state laws as well. Taking such factors into consideration, the most common types of business incorporation are Close corporations, C corporations, and S corporations.
Close corporations issue stock, but will usually do so in limited amounts. The amount of shareholders is usually about thirty, allowing for most of the shareholders to be directly involved in the decisions of the company.
C corporations are the most common type of incorporated business in the United States. Unlimited amounts of stock can be traded and will have smaller boards of directors making the decisions. Taxes are paid at the corporate level and at the personal level, while shareholders must pay taxes on dividends.
S corporations are almost the same as C corporations with the exception that they will only pay taxes on dividends and the corporation itself does not pay any taxes.

Business Incorporation in California

Business Incorporation in California

 

Every state in the United States will have its own regulations and rules regarding the business incorporation process. California has distinct sets of laws regarding incorporation of companies, including the actual incorporation process.

California incorporation will typically be in the form of S corporations or C corporations, though it may not be all that uncommon to have a Close corporation as well. S corporations can only have a maximum number of 100 shareholders total, while C corporations may have an unlimited number of shareholders according to California incorporation laws.

California incorporation will not necessarily be a thoroughly difficult process, though it is recommended that the proper legal advice be obtained for the process. California lawyers will prove to speed up the California incorporation process and make it less complex. However, California incorporation can be done without the help of legal advice.

California incorporation requires that at least three individuals be named to the Board of Directors of the company, though less than three can be named if that company only has one shareholder. Such information will be included in the Articles of Incorporation, which will also contain the location of the business, how many shares the company will have, and the bylaws or regulations of the corporation itself.

California incorporation is relatively inexpensive, only requiring a cost of $100 to file the Articles of Incorporation. However, there may be other costs incurred, such as fees for filing other necessary information or applications, including statements of information and possible amendments to the Articles of Incorporation.

Business Incorporation in Nevada

Business Incorporation in Nevada

Incorporating a business or company in the United States will prove to have several advantages for the shareholders involved. However, it may be argued that no other state in the country can provide for the advantages that are allowed by Nevada law. Nevada incorporation is often seen as having the most legal incentives and advantages, with the possible sole exception being the State of Delaware.

Many companies will take advantage of Nevada incorporation because of the protection and benefits it may offer. Furthermore, Nevada incorporation does not necessarily require that the business or company be based in the State of Nevada, which is one of the benefits incorporating in the State offers.

Even though Delaware has incorporation advantages similar those offered by Nevada, it is usually accepted that Nevada offers the most benefits. The main reason why many companies and businesses will consider Nevada incorporation has to do with tax and legal benefits. In the case that a company that has undergone Nevada incorporation procedures is taken to court or faces legal action, it will always be subject to Nevada incorporation laws, regardless of where it is headquartered.

Furthermore, Nevada incorporation does not require the corporation to pay franchise taxes, corporate income tax, or personal income tax, which will save millions of dollars for such corporations. Other advantages of Nevada incorporation include strong protection of the board of directors from legal action and against corporate takeovers and allowing for the identity of shareholders to remain private.

A Quick Overview on Incorporation

A Quick Overview on Incorporation

The process of incorporation is one in which a business or company can become a corporation, which allows it to be recognized under the law as if it were an actual person. A corporation can be a business or company, but also a non-profit organization, sports team or club, and even a city or town.

Business Incorporation Service

In many cases, those seeking to incorporate their companies or businesses will simply not have the necessary time to overlook every single step of the process. Incorporation services exist in order to provide for the required assistance to owners and shareholders for the purpose of readily and appropriately finalizing the incorporation process.

Incorporation

Incorporation

Incorporation, in the realm of business, refers to a business or company being formed into a corporation. Incorporation allows for such a business to then be considered and recognized by law. However, incorporation is not just limited to businesses, for incorporation can also be done for sports teams or clubs, a government, non-profit organizations, and even newly formed cities and/or towns.
In terms of business, an owner of a business may decide to incorporate his/her company because of the various legal benefits that are established with the incorporation process. Some of these benefits include the protection of personal assets, ability to transfer ownership, taxation purposes, ability to sell stock of the company, and create retirement plans.
In order to incorporate a business or company, there are certain steps to follow. These steps will differ from one state to the next and will also depend in what country the business is seeking to incorporate. Generally speaking, in the United States one must file the Articles of Incorporation with the appropriate State office.
The Articles of Incorporation will include aspects such as the purpose or reason to incorporate, where the business is located, and how many shares of stock the company has at the time of the submission of the incorporation application. Depending on the state, there will be certain fees required to be paid as a result of the incorporation process. These fees will vary, though they can be as low as $25 and as high as $1000 dollars, depending on the state.
What is Incorporation?


Incorporation refers to the process of turning a business or entity into a new corporation. Once finalized, incorporation allows the prospective business to be considered and recognized by law as a corporation. However, incorporation is not just limited to businesses, sports teams (or clubs), governments, non-profit organizations, and even newly formed cities and/or towns can be incorporated.
In order to incorporate a business or company, there are certain steps to follow. This process—and the laws that surround the process—will vary from state to state. The multifarious laws for incorporation, which can be found in a particular state’s Articles of Incorporation, must be complied with to legally incorporate an entity. 
The Articles of Incorporation will include the purpose or reason to incorporate, the location of the business, and the amount of outstanding stock at the time the application for incorporation is submitted to the state. Although the incorporation process varies from state to state, guidelines and surrounding regulations are somewhat uniform. Moreover, all states in the U.S. allow for online registration; an individual may incorporate an entity by accessing their state’s “On-line Business Filing and Registration Service” website. Listed below is the incorporation process for New Jersey: 
Incorporation Process:
A state’s online service will enable you to file new corporations, limited partnerships, limited liability companies, as well as, allow you to obtain authorizations for foreign businesses to conduct operations in the state. Furthermore, you may also register any business for employer contributions for unemployment and disability, taxes, and to obtain temporary certificates of authority for sales taxes. 
The first process required for incorporation is to choose the type of business entity you wish to incorporate—your state’s site will provide a drop-down menu that lists all entities eligible for incorporation (choose the formation that applies). Note: the choice of entity type and the effective filing date will have significant employer/tax implications. As a result, it is recommended that you consult with an attorney and/or a tax professional for guidance on said matters. 
After you select the entity type, you must enter the proposed name of your business at this point. The corporate name is comprised of three parts: a distinctive element, a descriptive element and a legal ending. The descriptive element is the name that separates your company from other entities; the descriptive element (not required) is the industry your business operates out of (i.e. Computers, Electronics, etc.) and the legal ending indicates the formation of the business (i.e. Corp., Inc., Ltd.).   
When you list the name, click ‘enter’ and then list the appropriate business designator, for example, corporation, incorporation, partnership etc. Once this is satisfied, you will be taken to the application, which will require the following information:
Your Employer ID number
The purpose of your business
Your NAICS code
The duration and total number of shares outstanding
Information concerning a Registered Agent
List the names and addresses for all Incorporators
The date of the application (the effective date for Incorporation purposes)
Once this information is recorded, you must sign the filing, pay the filing fee and confirm your wish to desire the said entity. 
Legal Benefits Attached to Incorporation:
Retirement Funds: When an entity is incorporated, retirement funds and plans may be established more easily.
Credit Ratings: Regardless of the owner’s personal credit score, a corporation can obtain its own credit rating and thus build a separate credit profile by applying for and using corporate loans, financing or credit.
Ability to Raise Funds: Corporations can raise capital from investors through the issuance and sale of stock.


Taxation Benefits: Corporations, in the United States, are taxed at lower rates than individuals. Moreover, a corporation can own stock in other corporations and obtain corporate dividends, which are 80% tax-free. 
Protection of Personal Assets: Corporations present the ability to safeguard personal assets against the claims of lawsuits and creditors. Other formations, such as sole proprietors and general partners, are responsible for the liabilities of the business. However, with a corporation, the shareholders, directors and officers are not liable for the entity’s obligations/debts—these individuals are limited in liability to the amount they originally invested in the corporation.