SHOULD I INCORPORATE?

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SHOULD I INCORPORATE?

The process to incorporate is fairly straightforward. The main steps are: acquiring appropriate incorporation forms from the state of you’re choosing, assembling required documents like corporate bylaws that limit investor liability and submitting forms, documents and required fees. Although the steps are straightforward, business owners seeking to incorporate may seek the assistance of an attorney.
Applying for incorporate the business
The cheapest way to incorporate your business is by submitting the “Incorporation” forms to your state government in person, by mail, or online. Processing prices vary by state but you can generally complete incorporation for Rs.2500 to Rs.5000.
As an entrepreneur, you know that incorporating your business can be a wise move to minimize your liability, protect your personal assets, and even provide tax savings in some cases. However, navigating the various logistical and legal requirements isn’t always easy particularly when you don’t want to spend countless hours buried deep in legal fine print.
Legal process for business
Once the decision to incorporate your business has been made, the legal process begins with the preparation of a certificate of incorporation. Whereas in the past this was prepared by three or more legally qualified individuals, today only a single incorporator is needed. The incorporator may or may not be a person who will own stock. The state is likely to have a standard form for incorporating a small business. The three typical pieces of information requested are: corporate name, purpose, and corporate life span.
The corporate name is usually required to be a business name dissimilar from any other firm incorporated within the state. In addition, the name must not be deceptive or misleading. The state charter office can tell you whether the name you want is available. The purpose of the business must be stated. It is a good practice to use a specific object clause that spells out the specific purpose for which the corporation is being formed. While most corporations are formed for an indefinite period, it is possible to set up a specific limited life.

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SHOULD I INCORPORATE?

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  3. 3. SHOULD I INCORPORATE?The process to incorporate is fairly straightforward. The mainsteps are: acquiring appropriate incorporation forms from thestate of you’re choosing, assembling required documents likecorporate bylaws that limit investor liability and submittingforms, documents and required fees. Although the steps arestraightforward, business owners seeking to incorporate mayseek the assistance of an attorney. Applying for incorporate the businessThe cheapest way to incorporate your business is bysubmitting the “Incorporation” forms to your stategovernment in person, by mail, or online. Processing pricesvary by state but you can generally complete incorporation forRs.2500 to Rs.5000.
  4. 4. As an entrepreneur, you know that incorporating yourbusiness can be a wise move to minimize your liability,protect your personal assets, and even provide tax savings insome cases. However, navigating the various logistical andlegal requirements isn’t always easy particularly when youdon’t want to spend countless hours buried deep in legal fineprint. Legal process for business Once the decision to incorporate your business has beenmade, the legal process begins with the preparation of acertificate of incorporation. Whereas in the past this wasprepared by three or more legally qualified individuals, todayonly a single incorporator is needed. The incorporator may ormay not be a person who will own stock. The state is likely tohave a standard form for incorporating a small business. Thethree typical pieces of information requested are: corporatename, purpose, and corporate life span.
  5. 5. The corporate name is usually required to be a business namedissimilar from any other firm incorporated within the state.In addition, the name must not be deceptive or misleading.The state charter office can tell you whether the name youwant is available. The purpose of the business must be stated.It is a good practice to use a specific object clause that spellsout the specific purpose for which the corporation is beingformed. While most corporations are formed for an indefiniteperiod, it is possible to set up a specific limited life.
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