Five Things You Need Before Incorporating Your Business
So, you want to incorporate your startup? Make sure you take a look at this checklist first – if you forget any of these items, you could be in trouble.
There are plenty of reasons to incorporate your business – but there are also plenty of reasons you might want to hold off doing so, as well. You shouldn’t be too quick to make a major decision out of the blue. Instead, it’s something you need to carefully consider.
And while you think about it, you’ll also need to collect a few things:
The Vital Details
First thing’s first, you’ll need to figure out the following:
- Your business’s name and address.
- Make sure your business name is unique, and doesn’t contain certain words like ‘bank’ or curse words.
- The names and addresses of any decision-makers within your business – who are your founders, executives, and board members?
- The physical address of your business in the state where it was founded.
An Agreement Between Decision-Makers
Here’s a question for you – how are you going to handle a disagreement between your business’s founders? What will you do if one person wants to buy out at some point down the line? Who will buy your business, and what will it be sold for? These are all contingencies you need to iron out with your fellow decision-makers before incorporating if you want to avoid a nasty legal dispute down the line. This is typically called a “Buy Sell Agreement” or “Shareholders Agreement”.
An Understanding Of What You Want From Incorporation
There are a ton of benefits from incorporation, but it also comes with a few disadvantages – namely paperwork, fees, and the fact that liability protection isn’t 100% guaranteed, depending on the state you’re incorporating in. Before you incorporate, think carefully about why you’re doing so.
Is it for privacy? Tax benefits? Employee incentives? Make sure you’re doing it for the right reasons, and that there aren’t any easier alternatives available to you.
Every state has slightly different rules where incorporation is concerned, including which articles of incorporation you need in order to move through the process. Check your state’s website, and gather all the necessary documentation, including the required forms. Once you’ve done that, you can render the final decision on whether or not to incorporate.
A Knowledgeable Agency To Help You Along
Last but certainly not least, it’s advisable to bring in a third party with a working knowledge of the incorporation process – a firm like MyNewCompany. Founded in 2001, our goal is simple – to make starting a business as simple, fast, and inexpensive as possible. We’ve helped form thousands of companies for our clients, and have grown into one of the largest and most reliable providers of incorporation, LLC formation, and other small business services.
Contact us today, and we’ll help you make your business a reality – without breaking the bank.