Incorporating your business is one of the most important tasks you'll complete for your business. When you incorporate your business, you'll create an entirely separate legal entity. One of the major advantages gained by incorporating your business is protecting the shareholders from personal liability.

Starting Point

The first thing you need to do is decide who will act as your incorporator. The incorporator is responsible for filing all documents pertaining to forming your corporation. An incorporator may be your accountant or lawyer. In other cases, an incorporator may be the service you use to file your incorporation documents. There are many online incorporation services to choose from, and they may range in cost from $50 to $400. Select a name for your corporation. Your corporate name will be cross-referenced with other businesses in your state to ensure it isn't already in use. Select a state in which to register your corporation. You can register your corporation in any state of your choice. Delaware and Nevada are popular states for businesses to incorporate because of favorable business tax laws in those states.

Paperwork Requirements

Choose the type of corporation you wish to form. You'll be able to form an S corporation or a C corporation. C corporations are generally larger corporations consisting of more than 75 shareholders. S corporations are limited to a maximum of 75 shareholders. However, you may be able to start a corporation with one owner. File the articles of incorporation with your government agency. In most instances, you'll file your articles of incorporation at your secretary of state's office. Most states have articles of incorporation printed for your convenience. In addition, you'll be required to elect a person or business that will serve as the registered agent for your business. The registered agent for your corporation is responsible for receiving all legal documents for the business. Your state might require you to take out an ad in a local publication announcing the formation of your corporation.

Choose a Structure

On the articles of incorporation, you'll be required to list directors, officers and board members. You'll need to demonstrate how the board of directors for your corporation was elected. If you are the sole shareholder in your corporation, you may be the director, officer and lone shareholder. Corporations should create corporate bylaws that indicate the rights and responsibilities of company shareholders.

Source:

Business

IRS

SBA

More Information:

Active Filings

Biz Filings

Incorporate