Incorporate - Links

Choosing the correct type of incorporation is an important decsision for any new business.

Incorporation is the process by which a company receives a charter by a state to do business. When incorporating, you have the choice of several types of corporate forms to choose from: C-Corp, S-Corp, and LLC.

A C-Corp allows for an unlimited number of shareholders, but income is taxed at both the corporate and shareholder levels. The S-Corp form allows a company to avoid taxation at the corporation level, but it limits the number of shareholders and is subject to other restrictions that the C-Corp is free from. An LLC is similar to an S-Corp in its freedom from taxation at the corporate level.

To begin the incorporation process, you must prepare articles of incorporation and file them with the appropriate state agencies. This process may be handled quickly and affordably by many online incorporation services. If you have questions about the incorporation process or whether or not you should incorporate your business, you may want to consult an attorney or accountant.

If you wish to incorporate in a state other than the one in which you reside or have an office, you may be required to have a registered agent in the state of incorporation. Many online services that can file the appropriate papers to incorporate your business may also be able to serve as your registered agent.