Basically, incorporation is the process of constituting a company, city, or other organization as a legal corporation. The process of incorporating a business can often be a daunting task. It isn’t made any easier when the person trying to incorporate their company has no background in business matters. One might have a killer business idea set to take the market by storm, but it is not of any good use if not correctly incorporated. With the right people helping with the incorporation, the success of the business is only imminent.
Because of how complex the incorporation process may seem to a relatively new market player, there was a need to form an organization that helps newbies with the incorporation process. This ultimately led to the birth of incorporate.com. The primary mission of incorporate.com was to help more individuals who find it relatively hard to go through with the incorporation process. The company aims to provide one with outlined steps about getting the incorporation done and maintaining their business by meeting the necessary legal requirements.
What Is Included In The Process Of Incorporation
As mentioned, incorporation might seem complicated at first, but once one gets its hang, it can be relatively easy. Great incorporate.com review follows a few steps while doing the incorporation, and all they need is some information to set the ball rolling. Here are the five steps involved with incorporation.
Selecting A State
The first step is simple. It involves selecting a state where one intends to incorporate the new business entity. Most people go for their home states, which is understandable. On the other hand, other people choose different states for different reasons. There are benefits to incorporating in certain states and, conversely, a downside for others. It is up to the business owner to weigh the pros and cons and determine which states will suit their intended business model.
This involves choosing the type of business entity one would like to incorporate. There are four different entities one could choose, and below is a detailed description of each of them.
Limited Liability Company (LLC).
This is the most popular business entity for apparent reasons. One is that it is the least complex compared to the other three entities, and the second is that its structure is very flexible. An LLC’s advantages include pass-through taxes where there is no need to file a corporate tax return, and the owners report profits or losses on their individual tax returns. Another advantage is that there isn’t a residency requirement, and owners need not have to be US citizens. Lastly, an LLC gives legal protection, and the owners have limited liability on debts incurred by the business. Like everything else, LLCs have their downsides. They have limited growth since owners cannot issue shares of stocks to attract investors. Another thing is that they lack uniformity and can be treated very differently across different states.
Popularly known as C Corp, this is the most popular type of corporation in the US because of the unlimited growth potential that can be realized by selling stocks to attract wealthy investors. Other than this, there are countless benefits of the C Corps, but the following stand out. C Corps have limited liability for starters, which extends from the directors at the top to the employees in the mailroom and everyone in between. Secondly, C Corps enjoy the benefit of perpetual existence even when the owner leaves the company.
However, the fact that they have unlimited growth brings about a few drawbacks such as being expensive to start, double taxation, and that shareholders cannot deduct losses from their personal tax returns.
This is mostly referred to as S Corps, like the C Corp’s lite version with an S Corp. One gets the advantage of limited liability, perpetual existence, and unlimited growth potential. In addition to that, S Corps are only required to file their returns annually and are not subject to double taxation. They also have their disadvantages, most notably that one HAS to be a US citizen and permanent resident. They also have limited ownership where one S Corp cannot have more than one hundred shareholders. In addition to that, they face more IRS scrutiny, and any mistakes regarding the various filing requirements can accidentally result in the termination of S Corp status.
This is mostly ideal for anyone looking to get involved in educational, scientific, religious, or charitable endeavors. This type of corporation has a few advantages, including but not limited to perpetual existence, limited liability protection, and eligibility for public and private grants. They have numerous tax advantages, but the laws governing them vary from state to state.
Adding Contact Information
Once one has selected their preferred package, they will need to add contact information. This includes their full name, addresses, and phone numbers, plus email. This is vital because, through this contact information, the people at great incorporate.com can reach them.
Adding Company Information
The penultimate step before completing the process of incorporation is adding the company information. Similar to the previous step, company information includes the full name of the company you intended to incorporate and the proposed addresses, including the street name and postal code. Contact information will also be required.
Review & Checkout
Once everything is done, one can review all the details to make sure everything is in order. After this, the only thing left is to check out and Viola! The company is now incorporated.
Why Work with Incorporate.com?
There is plenty of ways that one stands to benefit by working with incorporate.com. For starters, they get to work with a team of seasoned experts who have been doing this thing for over a decade. This way, one is assured of obtaining expert advice that can come in handy, especially when they are at a crossroads and don’t know which entity to go for. Besides, the prices are very affordable and one of the lowest in the market.