Do you have dreams of launching the next global corporate titan? Do you have a great idea for a product that you know deep down the market would embrace? Well, before you can start thinking about building offices overseas or launching an international marketing campaign, you need to build your business from the ground up with a rock-solid foundation. You can, of course, rely on your years of professional experience and deep knowledge of your industry, but it is going to take a lot more than a bit of simple know-how. Any experienced entrepreneur will tell you that starting a successful business calls for a lot of sweat equity and hard work. From how you tailor and assemble your business plan, to the vendors you choose to work with, and the employees you decide to hire, you can expect to be faced with a number of tough decisions on a daily basis. One choice that you will want to place special importance on, however, is how you choose to legally structure your business. If you have big plans for your enterprise, forming a corporation may be a wise maneuver. When you go to fill out corporate applications, though, you will want to make sure that you have your ducks in a row.
You should think of your business as its own living, breathing entity. Just as you have needs and goals as an individual, so too does your organization. In assessing how you wish to legally structure your business, you will want to think about what your plans are in both the short- and long term. If you are going into business with a work colleague or a friend of yours, you might find that a general partnership (GP) or limited liability partnership (LLP) is a good fit for you. If you are looking to maximize tax incentives and not be tethered to tedious maintenance requirements, you may want to look hard at the idea of starting a limited liability company (LLC). Or, perhaps your business is a bit more humble in scope, and a simple sole proprietorship will suffice. While those types of legal structures certainly have their place, businesses that aim for large-scale growth may need to consider forming a corporation. If you are in such a position, you will be pleased to know that you can complete corporate applications in all 50 states by working with us at Corporation Center.
When to Consider Completing Corporate Applications Online
In your time in the business world, if you have considerable experience, you have probably worked for a multitude of different types of businesses. Some of the enterprises may have been S- or C-corporations, which are relatively common in the marketplace. Though you may associate corporations with larger, international businesses, they certainly hold currency for smaller, domestic businesses as well. Corporations are a bit more rigid in how they can be managed, than, say, an LLC or sole proprietorship, and they also typically come with more stringent reporting requirements. The trade-off there, however, is that a corporation can issue shares of ownership to outside investment groups. This means that in exchange for a stake in your company, you can receive a relatively quick infusion of cash. You can use this capital to broaden your advertising efforts, hire a larger team, or even open new locations.
Not unlike LLCs or LLPs, a corporation essentially stands alone as a legal entity. A Corporation can buy and sell land, pay taxes, and borrow money–much the same as an individual person can. In some corporate structures, you can also experience limited liability protection, which can be appealing to entrepreneurs of all stripes. This means that any lawsuits or bankruptcies filed against your business cannot claim the personal assets of the incorporators in a legal judgment. This can, understandably, take a fair amount of risk off the table when starting a business.
When you start a corporation, you may also be able to receive “flow-through” status with the Internal Revenue Service (IRS). Under this distinction, gains, losses, deductions and credits can flow through your business to its incorporators. When maneuvered correctly, this can help you avoid paying taxes on your profits “twice.”
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If a corporation sounds right for the needs of your business, you will want to start out by choosing a unique corporate name that is not already taken in your state. You should also think about who you will appoint as your registered agent, which is the person who will navigate all legal correspondence on behalf of your corporation. To make things official, though, you will need to submit articles of incorporation to your Secretary of State’s office. This document should include relevant details about your business and its incorporators, as well as how many shares you plan on issuing.
At Corporation Center, we can help you accomplish all of this online with just a few clicks. Simply select your state from our navigation menu and you will be brought to a page containing all of our corporate applications. To learn more, visit our helpful Frequently Asked Questions page.
