Are you feeling unfulfilled in your professional life? Have you grown tired of working hard only to pad someone else’s bottom line? If so, you may want to take a hard look at the idea of starting your own business. Entrepreneurship can be a rewarding endeavor–but it also comes with a lot of hard work. Maybe you have a great idea for a new product or service. While that is a great and necessary start, it is only the beginning of what can be a long and arduous road. You will need to design a dynamic business plan that accounts for potential revenues and overhead costs. You may also need to hire an experienced team and locate office space or a retail location. Additionally, you may want to think about how you will legally structure your business. If, after much research, you have determined that starting a corporation makes sense for your business goals, you will also want to learn a bit about how you can file corporate applications. Luckily, at Corporation Center, we can help you do this online.
What does it mean to legally structure a business? Well, in a nutshell, it means separating your business as its own legal entity. This can, of course, be done in a number of ways, depending on the state in which your business is located. Many will opt for a simple sole proprietorship or general partnership (GP) if their venture is fairly modest. Others tend to gravitate toward the limited liability company (LLC) or limited liability partnership (LLP) due to the incentives they provide. For those who are looking for ways to accelerate rapid growth, it can make a lot of sense to file articles of incorporation. One of the main reasons for this is that a corporation allows your business to sell fractional shares of ownership. This allows your investors to reap the rewards of your success while giving your business a quick infusion of capital to be used for growth.
When to Consider Corporate Applications
When you create a corporation, you are giving your business many of the same privileges and rights as an individual. For instance, a corporation can own property, borrow and lend money, and pay taxes. Certain corporate structures will also afford you limited liability. This means that in the event your corporation is sued or files for bankruptcy, you and the other incorporators will be able to shield your personal assets from any legal judgments. There is also the possibility of pass-through status with the Internal Revenue Service (IRS). This means you can pass the gains and losses generated by your business to its owners.
Starting a corporation will generally require you to draft articles of incorporation. This document should include some basic details about your business, its incorporators, its registered agent, and how many shares you plan to issue.
Start Your Business Online!
If you are interested in starting an LLC, LLP, or a corporation, we can help. We have easy-to-complete web forms for all of your business structure needs. To learn a bit more about how we can help you, visit our Frequently Asked Questions page today.