What You Should Do To Set Up Your Business

If you are thinking about opening a business then you will need to go through the process of business incorporation. It is not a hard process but every state has its own set of rules and regulation. What you need to know is what incorporating your business will do for you and why it needs to be done in the first place. Let’s start with what incorporating your business actually means.

The reason that you go through this process is you are telling the state that you reside in that you are opening a business. Most states have forms that you can download and fill in yourself. However if you are going to be having partners and share distributions you may want to consider legal advice for how to set up your corporation. When you fill out the state’s form you are firstFeature Articles, letting them know what the name of your business is going to be.

Then you are also recording other pertinent information such as where your business will be located. You will also need to name a director; this is some one that is claiming responsibility for the corporation. You will also include all officers that will be listed on the corporation and you will need to assign them each a title such as president or secretary. In this declaration you will also need to set up the way your stocks will be distributed and what percentage of stock each officer will own.

Another reason it is imperative for your business incorporation to be set up is you cannot get an EIN (Employer Identification Number) from the federal government without it. Without and EIN you can’t open a bank account so it is important that you get your state paperwork together correctly and mailed in because you cannot go any further without it. You are also unable to get other necessary paper work completed such as filing for state unemployment taxes or a sales tax number.

One of the most valuable things that comes from incorporating your business is that you are setting your business assets apart from your personal assets. What this does for you is protects your personal assets from being part of any law suit that may arise from your business. This is especially important with the type of climate we live in where everyone’s answer to a problem is to sue someone. Make sure that you bring this up with your legal advisor when you are setting up your corporation.

So when you are considering opening a business it is important that you do all of the incorporating paperwork first. If it is a complex corporation you should get legal advice but for simple one owner corporations you may be able to do some of the paperwork yourself. Remember that business incorporation is a must in order to get registered with the proper paper work with the federal government and it will help protect your personal assets in the event that you are sued.