Who, When, Where, How?
When Should I Form a Business entity? If you operate a business, even a home-based or part-time business, or if you are thinking of starting a business, then the time to incorporate is now. Incorporating or forming a Limited Liability Company helps separate your personal liability from your business liability while offering additional tax saving benefits.
Who Can Form a Corporation? It does not matter if you are going to be the sole shareholder, directors, officers or employees you can form a Corporation. If your Corporation is structured correctly you can take advantage of many of the same benefits as fortune 500 companies.
When Should You Not Incorporate? The bottom line is, it is probably easier to outline who should not incorporate than who should. The people who should not incorporate are simply those who do not have a business and are not going into business. They are people who have no assets and have no plan or desire to accumulate assets. Anyone in business, going into business, anyone with valuable assets or working to acquire valuable assets should consider incorporating.
Where Should I Incorporate? It is not required that you incorporate your business in the state in which it operates. Small businesses just starting out will most likely choose to incorporate in the state in which they transact a majority of their business. Others will choose to take advantage of a preferred state such as Nevada.
In deciding which state is best to incorporate, consider :
- A particular state's regulatory climate
- Tax requirements
- Need for individual privacy
- The cost of filing fees
- Statutory law that favors business
Why would you choose Nevada over just simply forming a corporation in your home state? Nevada is continually ranked number one to do business and has some of the most aggressive pro-business laws in the country. Nevada incorporated over 50,000 companies last year, and 60% of those have officers and directors who live outside the state of Nevada.
Let's take a closer look at how Nevada encourages economic growth and how you can profit from this environment.
- A corporate commission does not regulate Nevada.
- There is no requirement to disclose to the state the date appointed for the next annual meeting of stockholders for election of Directors.
- You do not have to disclose in your annual report the location of principal places of business outside of Nevada.
- You do have to list the number and value of shares of issued stock.
- You do not have to report the transference of stock to the state.
- The annual filing fee is relatively low.
If you want to take advantage of the pro-business state of Nevada but you transact most of your business in another state, you need to qualify your Nevada company to do business in that state. This usually includes paying a small fee, which to most business owners is small potatoes compared to the benefits you get from forming your corporation in a preferred jurisdiction.
How to Incorporate?
- Choose the type of entity-Call 1-888-273-8152 for a complimentary consultation
- Choose a name-Laughlin will run an intitial name search to make sure it’s available
- Choose which state-Call 1-888-273-8152 a complimentary consultation
It is important to work with a trusted company, one that has been in the business for years and understands the importance of doing it right from the start. The biggest mistake you can make is to form a corporation with a discount broker who is more interested in collecting a fee than assisting their clients to make the right choice. Don’t be fooled by discount incorporation services. In most cases, the price does not include state fees, Registered Agent fees or a record book. These are basic items you need to have a properly structured corporate entity.
At Laughlin Associates, our number one goal it to make you a client for life, which means we have one chance to do it right. Laughlin has been assisting small closely-held corporate owners to reach their financial goals for over 33 years. The amount of money you will spend to clean up a company that was not started properly will cost you more time and money then spending a little extra money to go to a reputable company in the beginning, like Laughlin Associates.
When you incorporate with Laughlin Associates your service doesn not stop when you incorporate. You will have access to your own highly trained business strategists Monday through Friday 8:00 a.m.-5:00 p.m. PST, who are available to assist you every step of the way.
We love to talk with business owners who are serious about their businesses and excited to take their business to the next level. Feel free to give us a call at 1-888-273-8152, complete our getting started form, or use our Live Chat feature to get immediate assistance online.
All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service. If legal advice or other expert assistance is required, the services of a professional should be sought.
