Incorporate Yourself to Save Money but Beware of Mistakes
Incorporating a small business is no rocket science. If you are capable of operating a business, you are capable of incorporating yourself. Apply your mind and take care of the fine print and you are through. States actively encourage businesses to register and operate in their territory. For this, the state agency handling incorporations have simplified business registrations to the extent possible. All states have online resources that facilitate incorporations. Read their instructions carefully and act accordingly. No mystery there! You need not be a lawyer to read American (English) and understand the requirements. Any layman can do it.
As to why incorporate, you have to plan your future far ahead. Business continuity in any other business structure is moot. If you think yourself as an entrepreneur and wish to attain greatness in business incorporating yourself is the best bet. By incorporating yourself you plan for the future. The business structure of a corporation offers you business continuity and for this reason investors are willing to contribute funds to corporations. Stocks or shares in a corporation are easily transferable unless otherwise stipulated in the bylaws or articles of incorporation. Easy transferability converts into ease of attracting capital.
Beware of the mistakes that are commonly committed in small business incorporations. Usually this happens because you are in a hurry to start your business. A certificate of incorporation is not a license to do business. Other formalities and procedures are required in operating a business. You have to get all applicable licenses and permits for your business, a federal Employer Identification Number or EIN etc. The naming of your corporation is also important. You have to make sure that the name you select is not in use. Otherwise you may get sued under the Intellectual Property Laws and may end up paying damages.
Remember, you will need time to understand all the procedures and formalities and to comply with them. If you are engaged otherwise, weigh the pros and cons of spending time on incorporating yourself when compared to paying a lawyer for the work. It might turn out that paying a lawyer is far better than taking the effort yourself. The strain and hassle may well be not worth it. Lawyers experienced in incorporations can do the job within a fraction of the time you will have to spend on incorporating yourself. Moreover, you can avoid the stress from not knowing whether what you have done is right and any future complications due to a wrong act on your part while incorporating yourself.
