Incorporating Guide

Abstract Law.com offers a complete guide to incorporating your business. We have assembled a complete reference for you that includes the pre-incorporation decision process, selecting the right business entity, where to incorporate your business, tax and legal issues as well as maintaining your liability protection and running your business properly.

For more information, you can contact us Monday through Friday, 9am to 5pm (EST), by calling (347) 766-0LAW / 766-0529, and speak to an incorporation specialist who will provide you with a FREE consultation.

"Choosing the right entity type is probably the most important decision you will make for your business after deciding to incorporate"
In this guide:

Non Incorporated Business Structures
A brief overview of the default business structures. Comparing Sole Proprietorships and Partnerships to being incorporated. Learn about the many forms of Partnerships and the advantages and disadvantages of incorporating your business.

Incorporated Business Structures
Introducing the primary forms of incorporated business, Corporations and Limited Liability Companies. The basics of being incorporated and how to incorporate or form an LLC and Corporation.

Choosing and Entity Type to Incorporate
We examine the primary factors in entity selection, liability protection, tax advantages and transferability of ownership as well as maintaining your company's legal compliance after incorporating.

Tax Considerations of Business Incorporation
The LLC and both C and S Corporations are compared for you with tax advantages, benefits and differences between incorporated entity types.

Ownership and Transferability of Incorporated Businesses
How the different types of business structures compare when its time to transfer ownership, learn how Corporate stock and LLC interest vary as well as the flexibility of incorporating for transferability.

When to Incorporate Your Business
We explore several very different scenarios of entrepreneurs, showing real examples of when incorporating is necessary. Understand when incorporating may not be right for you and when it is absolutely necessary.

Operating Formalities and Limiting Business Liability
Once you incorporate, you must maintain your company's legal requirements, we discuss mandatory and recommended corporate compliance measures as well as compare entity types and their compliance requirements.

The Corporate Veil and Liability Protection
Once you incorporate, you must maintain your company's legal requirements, we discuss mandatory and recommended corporate compliance measures as well as compare entity types and their compliance requirements.

Comparing Management Structures of Corporations and LLC's
Once you incorporate, you must maintain your company's legal requirements, we discuss mandatory and recommended corporate compliance measures as well as compare entity types and their compliance requirements.

How Corporate and Pass Through Tax Scenarios Impact Your Decision on What Entity to Incorporate
Choosing a corporation or LLC has several advantages, especially when it comes to taxation. Learn about how LLC tax classifications and Corporate taxation can be an advantage in some cases or a disadvantage.

Incorporating Your Business and Protecting Both Yourself and Your Company
Compare liability protection of Corporations and LLC's, learn about the liability factors with being a business owner and what you can do about them.

Before You Incorporate
The pre incorporation process is critical. This is where you lay the foundation for your business. Understanding the difference between the types of business entities available and selecting the one that offers the most benefits for you, professionally as well as personally, could be your most important decision when deciding to incorporate a business. When you determine what entity type, some things will be determined for you, such as:

How many owners there can be for the business
What kind of owners your business can have
Owner's liability for business debts
Company's liability for owners debts
Operating formalities
Income tax liability
Total tax liability
This decision is often times not taken into enough consideration by novice business owners, therefore the business owners could be left with little or no protection, excessive taxation and faced with exposed personal assets to any business obligations. There is a lot of hype and buzz around this decision and this is where you begin shaping the future of your new enterprise. Take all of these considerations carefully and make an educated decision.

Its also positive to plan for the future. You're incorporating your business for today, next year, the year after that and hopefully, many more years to come. Therefore it is wise to be conscience of what you know about your business, now, and what you have in mind or as part of your plan for your business, then. There are some questions you might ask yourself that will be strong determining factors when deciding what incorporation structure is right for you. For some professionals, you are limited to what type of entity you can incorporate, specifically professional corporations, more on that later in the series.

As soon as you agree on receiving goods or money for a service or receiving more goods or money for a product that is in excess of what you paid for it - you have engaged in a business transaction. Without an immediate financial transaction or not, that is the simplest form of a business transaction.

Next Section: Introducing Business Structures