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How to Incorporate in Six Easy Steps

How to Incorporate

How to Incorporate in Six Easy Steps

Wondering how to incorporate? This article describes the basic steps required to create a corporation.

Incorporating a business? Here's how to incorporate a business.

Follow these steps to incorporate a business, and you'll be up and running in no time.

Step 1: Decide to incorporate. You don't have to incorporate. Make sure you understand the reasons to incorporate and make a reasoned decision.
Step 2: Choose a business name. A good name indicates what kind of business you are in, is easy to remember, and stands out from the competition. You want a name that catches people's attention and creates a professional image. Before choosing a business name, make sure you don't infringe on other companies' trademarks.
Step 3: Choose a type of corporate entity. You can incorporate as either an LLC, a C corporation, or an S corporation. Each corporate entity has different benefits. It's important that you understand the main differences before choosing the company formation that's right for you.
Step 4: Choose a state. Many entities choose to incorporate in Delaware or Nevada because they are friendly to corporations in a number of ways. Alternatively, you can choose to simply incorporate in the state where you live.
Step 5: Complete your incorporation paperwork. Fill out your incorporation forms and submit them to the state where you are incorporating. Fees will vary depending on what state you incorporate in and what company formation you choose. You can use an attorney to incorporate or you can do it yourself. There are many good online incorporation packages available that help you through the process.
Step 6: Select a Registered Agent.Every state requires that you appoint a Registered Agent. The registered agent is responsible for receiving important legal and tax documents, such as notice of litigation, franchise tax forms and annual report forms.