As a business owner, do you ever think of what could happen to your assets if anything ever happened to your business? With an ever-growing market and competition galore, anything can happen in today’s business world. For business owners, this could mean losing their own money and even declaring bankruptcy. Choosing the right method of Business Incorporation is essential to your business’ longevity and success.
Fortunately, there are several options entrepreneurs can take to protect themselves and their businesses. One of these is business incorporation. Shamika Saves can help you with every step of the way, from preparing your paperwork to helping your business get on its feet. If business incorporation sounds like a good fit for your company, Shamika can help.
What Is Business Incorporation?
According to BizFilings, “incorporating a business means turning your sole proprietorship or general partnership into a company formally recognized by your state of incorporation. When a company incorporates, it becomes its own legal business structure set apart from the individuals who founded the business.” If you’re ready to take the next step toward growing your business, Shamika can help. At Shamika Saves, we can take the guesswork out of forming your business corporation. We can help you file the paperwork and get ready to set up your:
- S Corporation
- C Corporation
What You Need To Get Started
Once a business has decided to file for incorporation, there are several steps it will need to take before it achieves this status. One of the first steps is to prepare articles of incorporation for your business. While each state has its own rules and regulations surrounding incorporation, some of the general items you will need may include:
- Business Name
- Your Business Address (For Mailing)
- Your Physical Location (For Receiving Legal Documents)
- Names of Business Owners
- Names of Decision-Makers
Kickstart Your Business Today
If you’re thinking of incorporating your business, there’s no better place to start than Shamika Saves. Shamika can answer any of your business and financial questions, no matter what they might be. For any queries, tips, or quotes, contact me today at firstname.lastname@example.org or call at 407-930-9570. You can also get in touch through our contact page.
Types Of Corporations
After weighing the benefits and disadvantages of incorporating a business, it’s time to learn more about each one. Which type of corporation will work best for your business model? Are you a charity or a profit-based business? Determining these differences will help you decide how you should file for incorporation. To learn more about each type of incorporation, read below:
- Avoids double-taxation
- No income taxes
- May suffer losses on personal income taxes
- Not recognized in some states
- Taxed separately
- Shareholders are not taxed
- Shareholders pay income taxes
- Recognized on federal and state levels
- Eligible for tax exemption
- Grant eligibility
- Unlimited lifespan
- Formal structure
LLC (Limited Liability Company):
- Standard taxes
- No shareholders
- Restricted transferability
- Limited continuity of life
The Pros & Cons Of Incorporating
While incorporating a business may seem like an excellent choice, it isn’t always the most practical option. Depending on your business needs, I can help you decide if you should incorporate your business or try a different approach. Some of the advantages and disadvantages of incorporating a business include:
- Protection from personal liability or loss of personal assets
- Reliable legal precedent
- A good start for companies who intend to go public
- Can easily transfer ownership
- Unlimited lifespan
- Some tax benefits (excl. C corporations)
- Required annual meetings
- Required formalities for business owners
- More expensive to set up
- More tax and other filings required
How To Start A Business
If you’re thinking of starting a business, there are several steps you’ll need to take to become official, including some certifications. To get started, follow these steps to establish your business successfully:
- Do Market Research: To understand your place in the market, conduct market research to find out of there is an opportunity for your idea.
- Draft A Business Plan: Once you’ve decided if your idea has the potential to succeed, draw up a business plan. This will become the foundation for your company’s success and help you convince people to work with you.
- Secure Funding: Startup costs can be expensive, and it is unlikely that you will be able to fund it yourself. Applying for an SBA loan or grant or trying a creative alternative such as crowdfunding can help you raise the capital you’ll need to get off the ground.
- Decide On Location: Within your market research, you should determine where the hotspot for your idea is. Is there a specific area that more people are buying into your vision? Or can your business be run online?
- Decide On Structure: Your business will need a legal structure, which will impact your business registration, your taxes, and your liability. Choosing to incorporate your business, for example, will help protect you from personal liability but can cost more in the long run.
- Choose A Name: While it may seem minor, choosing a business name can be a massive step for many business owners. Make sure your name is catchy, fits your business, and makes sense—double-check to ensure that no one else has used your name, as well.
- Get Registered: Once your planning is complete, it’s time to make your business official. Register your business at both the federal and local levels.
- Get Your Federal ID: Every business needs an employer identification number, or EIN. You’ll need this number to open a business bank account, pay taxes, and other necessary steps down the line.
- Secure Permits & Licenses: To ensure that your company is legally sound, apply for the necessary permits and licenses. This will vary greatly depending on your industry, so check with your local government to guarantee you have all of your bases covered.
The Final Steps of Business Incorporation
After you’ve finalized each of these steps, you can now call yourself an official business. Regardless of what you sell or the services you offer, these steps can help you establish your company correctly. You could also consider incorporating your new business as an S corporation, C corporation, LLC, or nonprofit, depending on your product. To go a step further, you could also consider applying for a small business certification such as a Woman-Owned Small Business, Minority-Owned Business, or any other type that may fit your company.
Establishing A Corporation
As a business owner, you can, of course, choose to keep your company under your name while you run your business. However, this can expose you to personal liability. For example, if someone sued your business, they could sue you for your personal assets, as well. To avoid this, many business owners opt to categorize their company as a corporation or an LLC. As an incorporated business, you will protect your personal belongings and credit. Separating your assets from your business can also help protect your credit. Incorporating your business is a great way to establish business credit due to your new status as a reliable company that creditors will be more likely to place their trust in.
Let’s Get Started Today
Does business incorporation sound like the right choice for your company? If so, Shamika Saves can help you get started and walk you through the process of filing for incorporation. With my business and financial expertise, I can help you decide if this is the right step for your business or if you should explore other options. For a consultation or any questions, give me a call at 407-930-9570 or send me an email at email@example.com. You can also reach me through my online contact page. Let’s get started today!