Business Formation: 9 Things to Know Before Choosing an Online Incorporation Service
Incorporation is something that could save your livelihood. When you incorporate your new business you automatically upgrade your status, while protecting the things you’ve worked so hard to achieve for you and your family. Your liability moves from personal to commercial, therefore your assets that you’ve attained and obtained outside of being a business owner are safe.
1. Written Agreement Between Decision Makers
One of the most important things you can do is getting a written agreement between the people that make the decisions for themselves or others.
2. Entity Type
Before you get the written agreement you’ll need to choose the type of entity you will be starting. You can easily find an LLC, S-Corp, INC, DBA, Non-Profit, using a Business Entity Search. Although many of these business structures are very similar, there are many differences between them, especially if you decide to go with LLC or S-Corp.
3. Splitting Equity
What splitting equity means is that two or more people share responsibilities on a business. You should always have a clear agreement with your partner or partners in writing on who owns what portion and or share of the company.
Understanding what jurisdiction your entity falls under is extremely important. You need to load up on knowledge of this subject. At the end of the day, you have to take care of yourself and know all of the legislation concerning our business.
5. Payment Method
Nowadays people can be fairly particular about the way they pay for things. Some people love using Venmo, AliPay, and other methods. However, the most secure and simple way is to seek out incorporation services that accept PayPal.
6. Personal Wealth May Not Be Protected
If you don’t’ take the proper steps to incorporate your business your personal wealth will most likely not be saved and or protected in case of extenuating circumstances. There may be no more important point to pay attention to than this one, especially if you don’t have a whole lot of money.
7. Special Permits
When you are in the process of incorporating your brand new business, you will want to make absolutely sure that you have the right permits. If you don’t have the correct paperwork or permits then you will most likely face a major problem down the road. Keeping up to date on this will be one of the most astute things you can do for your business.
8. Choosing the Right State (State Tax Implications)
Not all states are created equal when it comes to taxes. You should take care to peruse every state’s laws when it comes to taxes and subsequently choosing a state to conduct your business in if you can help it.
9. Business Information
You also should meticulously scour your paperwork or documents to make 100% sure that you have the right address, account information, business codes, etc. It should be noted that this should not be taken lightly.
Above are some great tips to help you navigate a successful path to incorporating your company online.