So many new entrepreneurs rush headfirst into what they don’t know or fully understand. I’ll declare my bias here early in this article – I believe every new business should incorporate before they really get started.
Incorporation is a very simple legal act that creates a separate entity from the individual(s) that own the company.
This is of crucial importance because in the case of legal action brought as a result of something you or someone inside your company did, a determination is made by the court – is it YOU that is getting sued personally, or is there a business getting sued.
See, if you are personally getting sued the door is wide open… the court can take house, cars, boats, savings, and notebook computers. Almost anything is open to the judgment of the court when you are not incorporated.
Incorporation takes just about a couple hours of effort to figure everything out.
Basically you need to find out:
1. Where online do I incorporate?
I have a number of options for you, but one of the best is to incorporate in Florida where there are no personal taxes. Incorporate as a LLC (Limited Liability Company) or an S-Corporation (Subchapter S as the IRS designates them) and draw a salary and the state of Florida does not tax you on your income. How about your state?
2. How much is it?
At that site I linked to above in #1 it will be under $300.
3. Which type of corporation do I pick? LLC? S-Corp? C-Corp? Nonprofit?
This is where the research comes in. That site I mentioned has a lot of information on it that should help. As does one of our other sites, “Florida-Incorporation” (.com)
Once you have #3 figured out it will take you less than 15 minutes to process your incorporation at either StartFloridaBusiness.com or Florida-Incorporation.com. That small business, run by my good friend, Dean Harrington, has been providing excellent service for more than a decade now.
Start a business in Florida and pave the way for a safer business existence in this litigious nation!
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