Whether you run a brick and mortar company, or an e business setup, incorporating your firm is very important. Before entering the process of having a business incorporated, it is worthwhile to decide whether the process is indeed beneficial for the owner and the business itself. The chief gain made by having the business incorporated is that the company’s liability becomes limited to once it the process is complete. The rationale behind this is that when the company is incorporated, the liability of the owner becomes limited only to the amount of capital brought into the business. Even so, the disadvantages of making a business incorporated include additional expenses for bookkeeping and statutory control as well as double taxation. Double taxation means that the company is taxed twofold in terms of its profits as well as on the dividends earned from its net gains. These thoughts have to be addressed cautiously before one decides to have the company incorporated. Read the rest of the article to know how to become incorporated.
The moment a decision is made, the next step in to choose a name for the company and specify the state in which the company is to be incorporated. The next point is to confirm from the state secretary whether the name is available. What follows next is checking the availability the company trademark from the trademark website of the United States. For small companies that have the intent of operating on a small scale with on state’s jurisdiction, the best decision is to have the firm incorporate in the home state. If the company owner wants to venture beyond borders, this indicates confidence and motivation for growth. In such circumstances, it is imperative that the company be incorporated in a state that offers bountiful business prospects.
With the aforementioned conditions fulfilled, the next move is to verify the availability of all pertinent documents. The documents consist of the Certificate of Incorporation or Articles of Incorporation, Stock Ledger, Stockholder Resolutions, Bylaws for the Company, Stock Certificates, and Declaration by the Company Board of Directors. The practice of being incorporated has been made easy by the Corporation Act, through which most processes have been simplified, by among other things, the use of Internet facilities.
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