Incorporation: Is it for you?

Many small businesses would benefit from incorporation, but there are various things to consider before taking that step. My friend who has a business near here became incorporated a few years ago because it was the only way she could actually receive funding to help with some aspects of her business. It worked out very well for her.

Incorporation can open doors to small businesses who want to offer shares, but that's not important unless you plan to go public and offer millions of shares for your business. The rules that govern corporations, however, can vary widely from state to state. In Nevada, for instance, you can offer 75 million shares for the low filing fee of $75. But in Delaware, you may wind up paying tens of thousands of dollars in legal fees and filing fees for the same thing.

Directorship also varies from state to state. Your state may allow you as a single owner to hold the positions of director, president, treasurer and secretary, or your state may require several different people to hold these positions.

You should also check into the difference between LLC and S Corp. Indeed, there are many things to consider before you decide to incorporate your business, and none of the issues should be taken lightly. You should research, investigate, and draw your own conclusions using reliable resources before taking this step in your dream of owning a business. Check out the fees of various entities who deal with assisting people in incorporation.

After doing all this, you may find that incorporation is just the thing your business needs to get it off the back-burner and into the public eye, ready to grow and work for you in the way you always imagined.