Legal Articles

Thursday 5 February 2015

Want To Incorporate A Business? Learn How To Incorporate The Right Way


Want To Incorporate A Business? Learn How To Incorporate The Right Way

When a business is incorporated, it becomes a company and it can acquire assets, enter into agreements and contracts and even go into debt as a company. In essence, the corporation’s assets and money belong to the corporation instead of the shareholders. It is a process that ensures that separate legal status, liabilities, property and rights remain in existence till the corporation is dissolved even in situations where some of the directors or shareholders end up selling their shares, leave the corporation or die. 

The benefits of incorporating a business

By deciding when and how to incorporate a business, you will enjoy benefits such as an LLC (limited liability company). This takes the burden off the shareholders, since they are not in any way responsible for the debts incurred. No shareholder loses more than his investment in case the corporation goes bankrupt. It also makes it impossible for creditors to sue shareholders for any debts or liabilities under the corporation. 


The other benefit of incorporating a business is low corporate tax rates. This is because the taxes are done separately from the owners and corporate tax happens to be much lower compared to individual tax rates. The business will also stand great chances of accessing capital when it is a corporation. Money can also be borrowed at lower rates by corporations than any other types of businesses. This puts your business in a suitable financial environment in case there is need to borrow. There are lots of other benefits that a corporation has over other businesses, but you must know how to incorporate a business first. 

The Business Incorporation Process 

Fill the articles of incorporation – this is the very first step of incorporating your business. The document is usually filed with corporation division of the state department. The cost varies depending on the state of incorporation. 
Name the corporation – after you have filed the articles of incorporation, you will then be required to name the corporation, give the address and the name of the registered agent. You might also be required to give the names of the directors within the corporation. The purpose of the corporation should also be stated together with the capital stock types and amounts the corporation is authorized to issue. 

It is important to remember that the incorporation process revolves around several legal issues and you will need to remain within the law when incorporating. The issues can vary from one government agency to another and a business lawyer can come in handy to help out. Apart from helping you out with the process of how to incorporate a business, the lawyer will help in filing articles of incorporation. The incorporation can be different from one corporation type to another, but with the professional assistance of a qualified lawyer; you should enjoy a smooth process. 


When choosing a business attorney, always rely on past success stories, the experience and the qualification. The service charges should be also considered so that you can comfortably afford the important services that you need for the incorporation process. 
Figuring out how to incorporate a business can seem like a very tedious process, especially for small businesses or business people who do not know much about the process. With the assistance of a business attorney, however, you will reap all the benefits without breaking a sweat.

Business Attorney, Business Lawyer

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