A small Business
What Does Small Business Incorporating Entail?
Before you decide on incorporating
a small business, there are several issues you need to be aware of.
People think of starting small business
ventures as a way of protecting themselves by forming an
entity that is legally recognized by the state, and which allows them
to manage their assets better.
In case of a risk or loss, small business
incorporating will safeguard personal assets and helps reduce your
It is important to talk with an
accountant and lawyer to know all the details that are involved in how
to incorporate a small business.
Types Of Corporations
The next important step would be
to determine the type of business you desire to establish.
Will your business be a
general partnership or
a sole proprietorship.
You can opt for General
Corporations, Professional Corporations,
Sub-chapter Corporations, Non-profit corporations, Limited Liability
Corporations etc. when incorporating a small business.
The type of corporation you
choose depends on the number of persons that are involved, the
nature of work
to be conducted, the size of the business and whether it is a
for-profit or a non-profit.
if you are a doctor or any
other professional, then forming a professional corporation might be
choice. Many details need to be considered when incorporating for
small business ventures.
The most direct way to incorporate
a new business is to log in to your State Department’s web site and
complete the online application for incorporation.
business owners can contact their state's Division of
Corporation by mail, courier, phone, or email.
Before incorporating for small
business, you need to ensure that the
name you have chosen for your business is available. Once you have
determined this, you must reserve the DBA (doing business as)
The incorporating agency will
then draw up the necessary “Certificate of Incorporation” and
route the “filing” fees to the concerned agencies of the State. This
document is the Article of Incorporation
which proves the legal status of your business.
you are interested in incorporating a small business and maintaining
your incorporation status, at minimum you must choose a name for the
business and decide where you plan to run the operations from.
of the main advantages of
incorporating a small business are:
- Continuance – a corporation has a life span that is
- Easily raise financing - as corporations
can sell shares and equity capital can be raised
- Controlling Income – which is a tax advantage
- Employee retention -Employees can be retained by
offering them stocks
the Small Business
of acquiring S Corporation
status would be no Corporate Taxes, reducing Taxable Gains, and
a small business are an increase in paperwork, not being eligible for
personal tax credits, expensive registration fees etc.
If you are committed to the
success of your business then you may consider hiring a business coach
to help with the incorporation and business set-up process.
Apart from this, a coach will also help
you analyze your business and implement a business plan to help you
find a niche market, increase your brand’s awareness, and promote your
A Small Business
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