If you have a start-up business, you may know that incorporation offers many advantages. However, getting incorporated can be a lengthy and confusing process. Nonetheless, the ability to incorporate online takes a lot of the inconvenience out of incorporating your business. No matter what you might have heard, though, online incorporation isn't just a matter of ticking off a few checkboxes and clicking "Submit." It's important that you understand the different types of incorporation and decide which one is the best type for your business before you set up your corporation online.
Research Your Incorporation Options
Most people who opt to use an online incorporation service are doing it to save lawyer's fees, but a lawyer's advice is the best help you can get in deciding on the type of corporation for your company. If a lawyer is out of the question, though, many sites that provide the forms and resources you need to incorporate online often also provide a great deal of information to help you make your decision. Whether you want to incorporate in Texas or form a Wyoming corporation, the best online legal business sites will provide the information you need to help you make important decisions about your new company.
Why an LLC?
Among the most popular types of corporations are limited liability corporations, usually abbreviated as LLCs. LLC formation allows you to shield most of your personal assets from liabilities incurred by your business activities. The benefits of forming an LLC typically include:
No Ownership Restrictions
Unlike other forms of incorporation, LLCs are not limited on the number and type of owners - your business can be owned by an individual, a corporation or any mix of types of owners.
Pass-Through Taxation
LLCs generally don't pay any taxes at the business level. Instead, the income passes through to the owners, and is claimed on their personal tax returns
Flexible Management Structure
As the owner - or member - of an LLC, you have the flexibility of setting up your company's management in the way that makes the most sense for your company.
Less Paperwork
Unlike C-corporations and S corporations, LLC don't have meeting requirements and have far less paperwork to fill out each year.
In short, the structure is simpler and the requirements are less onerous, but an LLC still provides the financial and asset protections of incorporation.
Forming an LLC
The exact requirements to form an LLC vary from state to state, but the basics are the same across the country. The most important factor is filing "articles of organization" - again, the specifics vary from state to state, but in general, the articles of organization consist of the name of the LLC, and the names and contact information for the members - the formal name for the owners of the corporation.
When You Incorporate Online
Before you incorporate online, do the research to figure out exactly what kind of corporation is right for your company. Even though you don't need a lawyer to file your paperwork for you - especially when you incorporate online - it's often a good idea to have a lawyer look over your paperwork and ensure that you've got it all set up properly. Once you've got those assurances, you can go ahead and do your incorporation online the easy way, and save the money a lawyer would charge you to do all the legwork and paperwork.
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About the Author
Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2011 (Sun Nov 20 2011) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com
