How to Incorporate Your Small Business (Easy Step)

When you start a small company, you need to decide how to structure it. Each structure has its own set of pros and cons; the ideal structure will depend on your company, place, and special needs.

If you're unsure what construction is best, review the benefits and pitfalls about the U.S. Small Business Administration site.

If you've determined that a company is the right structure for the company -- and here's a review of some of the advantages of forming a corporation -- follow these seven steps to becoming integrated. You should always consult with an accountant or an attorney if you have questions regarding this process.

1. Pick Your Company NameThe first step is choosing a name for your enterprise. A successful company name must match what you do, how you can do it and the audience you're trying to achieve. It needs to be something people will understand and recall.
   
   When you create a company name, you should consult your state's corporate filing office as well as national and state trademark registrars to determine if it's available. It's also a good idea to come up with an alternate name in the event your first choice isn't available.
   
2. Describe Your LocationNext, you need to select a condition as your headquarters' location. This doesn't necessarily have to be where you live or even in which you expect to do the majority of your business, although sticking with your home state may be a simpler process.
   Some factors to think about when picking a nation for incorporation include the cost to include, taxation and corporate legislation.
3. Select the Kind of CorporationNow, it's time to choose which sort of corporation you will form. You can incorporate your company for a C Corporation, an S Corporation or an LLC. Each of these forms has their own advantages and disadvantages, so you need to explore the explanations of every corporation kind and consult with a tax accountant for advice.
4. Name the Company DirectorsThe next step involves choosing the supervisors. A corporation is required to have a board of directors who are effectively responsible for conducting the company. The choice of supervisors is an essential decision and can affect your business in a lot of ways.
5. Determine the Kind of SharesYou will select the type of shares your company will sell to stockholders. In many cases, corporations are private, limiting the access to the stocks to only a few people (your directors).
6. Get a Certification of IncorporationThen you'll obtain and complete a Certification of Incorporation, available in the state's corporate filing office. It will include your company name, the intention of the business, place and other information gathered in the previous steps.
7. Process and File the PaperworkThe last step of incorporation involves submitting the articles of incorporation you ready in the last step to the condition, together with the required registration fee.

You have the option of submitting the paperwork through your lawyer or by utilizing a third-party support. You should choose the option which you're most comfortable with and the one that works within your budget.