Gareth Steven’s Inc

Richard Taylor asked:


If you’re about to start the process of incorporating your company, you need to give some thought to which state you are going to incorporate it in. Your home state does not have to be your state of incorporation, you can in fact incorporate your business in any of the states within the US. For larger businesses there are advantages to incorporating outside of your home state, with Delaware in particular offering a number of benefits.

Before we discuss the benefits of incorporating outside of your own state, and in particular in Delaware, you should first consider whether incorporation outside of your home state is a viable option at all.

If your business is relatively small in size, the costs of employing an agent and of incorporating outside of your home state, may remove any advanatages of incorporating elsewhere. In general you should stick to your own state if your business is small.

One of the costs you will incur are those of an agent to represent you in the state you choose. If you decide to incorporate in a state outside of your own, your business will be classed as a foreign corporation, and you will therefore be required to use an agent to represent you.

Also, you should consider your geographical trading area. If your business is based solely on your home state, it will probably make most sense to incorporate there. But if you trade across multiple states, incorporation elsewhere may make sense.

So, why incorporate in Delaware? What are the advantages that make Delaware such a popular state for incorporating in?

1.Delaware offers favourable tax treatment in the form of low franchise taxes and no state corporate income tax for companies that operate outside of Delaware

2.Delaware has low incorporation fees

3.Delaware courts are very pro-business and support companies incorporated in the state, with much of its corporate law written to protect the rights of shareholders

4.There is no minimum capital requirement when incorporating, and only one incorporator is required

5.The state has no sales tax, personal property tax, or intangible property tax on companies incorporated there

6.A company can keep its books and records outside of the state

Because of all these advantages, over 250,000 companies are incorporated in Delaware. In fact over fifty percent of all companies trading on the New York Stock Exchange are Delaware corporations.

You should seek qualified legal advice before deciding to incorporate outside of your own state, and then decide whether or not you will benefit from the advantages above.

Heather Colman asked:


What are Articles of Incorporation?

Articles of incorporation are needed when a business decides to incorporate. Articles of incorporation are a set of rules that determines how a corporation should be managed and they are filed with the government in your area. In order for a business to become a corporation, the Articles of Incorporation must be filed with the appropriate agency. It is important to know that in, they may not be called Articles of incorporation in your area. They may also be referred to as Certificate of Organization, Certificate of Formation or Certificate of Organization.

Where do I file the Articles of Incorporation?

Articles of Incorporation must be filed with the government in the area in which you intend to incorporate. Typically the forms are filed with the Secretary of State. However, if approved you may use another regulatory agency or company. There will be a fee associated with filing Articles of Incorporation and this will vary depending on where you live.

The forms needed to file the Articles of Incorporation should be readily available to you from a variety of venues. You can obtain them by printing them on your computer from the web site of the Secretary of State. You can also obtain the forms needed by writing to or calling your Secretary of State and asking them to mail the form.

What information is contained on the Articles of Incorporation?

There is a variety of information that is required when you file the Articles of Incorporation. These are the basics in all areas. However, your local government may require additional information. It is important that you conduct full research on what your area may require.

The first piece of information to be listed on the Articles of Incorporation includes the name of the corporation. This will be the legal business name under which the corporation will conduct business. This should include any designators at the end such as Inc. or Corp.

You will also be required to determine the purpose of your corporation as stated by the government in your area. The name and address of the person responsible for accepting any legal notices in regards to the business named, such as an attorney.

Another piece of information that is required on the Articles of Incorporation includes the number of shares the business is allowed to issue. The type of business the corporation is conducting will determine the amount of shares issued and how many people can hold them.

The final requirement for the Articles of Incorporation are the signatures. This should be of the incorporator or any directors along with the addresses of all signatories.

Other requirements that may be required in your specific area could include the duration of the corporation, if the corporation will have preemptive right or cumulative voting and if the business will offer various classes of their stock shares. It is important that you research all areas of the Articles of Incorporation and understand what is required and what additional items may be added to your filing.

Ramapati Singhania asked:


There are many options available to find information about incorporating. One of the options is to hire an attorney who would, for a fee, perform the incorporation. The attorneys fees should also include the cost for incorporating, as it would be convenient for him to pay as he goes.

Another option is to locate companies dealing with incorporation related matters on the web. These companies would be able to provide the right guidance because of their experience and wider reach.

There are actually many sources for finding incorporation help and before deciding on an attorney who can be quite expensive its better to take some time off to find information right from the web or in your yellow pages.

There is unending information available on the web that could be very helpful. Contents available on the web explain in detail as to what incorporation is and how incorporation help can be availed online. You will have a clear understanding as to what should be done for a particular business. It also gives a picture about the advantages and disadvantages of incorporation.

The web not only helps in finding incorporation help but is also instrumental in answering some fundamental questions about incorporation. Incorporation protects a company and gives it a unique identity thereby allowing the company to represent itself and be an independent legal entity.

The greatest advantage of incorporating is that in the event of the company getting sued the personal assets of the owner or owners are not affected. It is because of this that after forming a business the owner or owners make it a point to get it incorporated within a short time.

After finding incorporation help forming a corporation becomes complete and hassle free. Owners can then derive advantages such as limited liability protection, payment of corporation taxes at corporate rates which are generally lower than personal taxes, attractive investment opportunities and capital incentive benefits, reimbursement of many types of expenses, a better operational structure, the corporations perpetual existence and smooth transfer of corporation shares.

Because the owner or owners get so many advantages from incorporating a corporation, it is not surprising that incorporating help is very much in demand in most business savvy countries of the world.

As mentioned earlier finding incorporation help is not so difficult with thousands of companies and consultants specializing in this matter. In fact to obtaining incorporation help from experts is just a click away provided the necessary homework has been done regarding the credentials of such service providers.

After having decided to incorporate the next step would be to choose the proper type of legal entity from a wide range of choices such as LLC (limited liability company), S-corporation, C-corporation, General/Limited partnership and LLLP (limited liability limited partnership. It is important to choose a proper structure because each has its own operational requirements, tax implications and legal privileges. The last step is to select the best incorporating service you can feel comfortable with.

Wayne Hemrick asked:


Nevada incorporation can provide a great many advantages and protections to your business. When you form an LLC anywhere in the country, you are literally limiting your liability to that of the business, thus protecting your own private, personal assets. However, having a Nevada LLC has additional benefits, include lower fee structures and the absence of a sales tax. Read on and discover all the reasons why you should consider Nevada incorporation.

A Less Expensive Corporate Haven

Both Delaware and Nevada are considered “corporate havens. This means that by incorporating business in one of these states, the business entity is eligible for special privileges, protections and rights that are not always available elsewhere.

The main difference between Delaware and Nevada is cost. Taxes and fees associated with incorporating business are significantly higher in Delaware. On the other hand, the filing fee when you incorporate in Nevada is currently $125. In addition, Nevada incorporation means no corporate income tax.

According to the website of the Nevada Secretary of State, a Nevada LLC is not assessed many of the taxes that those who incorporate online in other states may be assessed. These include franchise taxes as well as unitary and estate taxes, should you choose to transfer the business to heirs.

Another reason for incorporating in Nevada is the comparatively low annual fees. If you form an LLC in Delaware, it will cost you a minimum of $380 per year to maintain your charter, and this figure can go much higher as your business expands and revenues increase. Nevada incorporation means that you’ll pay much less each year for such fees.

Nevada incorporation is good for those who have employees as well; the employer payroll tax is a mere 0.7% of gross wages, and you can deduct the cost of employee health insurance as well.

More Control

A business that has Nevada incorporation status can legally issue stock in order to raise capital as well as for the purchase of personal property or real estate - or for taking out a lease or option on the same. When your business chooses to incorporate in Nevada, it may hold, sell and transfer shares of its own stock as well.

A Streamlined Legal System

Nevada’s business courts are similar to those in Delaware, offering many of the same protections. Deciding to incorporate business in Nevada is a smart one, because Nevada Business Courts provide excellent case management, active judicial participation in settlements, and predictability. These courts also prioritize such hearings so as to minimize disruptions to the business process.

It’s relatively simple to incorporate business in Nevada, and there are many reputable firms that can provide assistance in the Nevada incorporation process.

Richard Taylor asked:


In this day and age, incorporating your business online is a viable option, and definitely an option you should consider. There are lots of online incorporation services to choose from, and their services are pretty competitively priced.

Before you do incorporate online however, there are lots of decisions that need to be made in advance.

For example, you need to decide on the type of corporation that best suits your company. In particular this decision is critical as it will effect how your business is taxed in the future.

You also need to decide before you start the incorporation process, the state in which your business is to be registered in. Will it be your home state for convenience, or will you take advantage of some of the benefits that incorporation in states such as Delaware or Nevada provide?

Once these critical decisions have been made (professional legal and financial advice should always be sought), you can turn your thoughts to the actual incorporation process.

You could decide to complete the legal forms yourself and file them with the Secretary of State, or you could place the process in to the hands of your lawyer.

Alternatively, you could use the services of an online incorporation company. The online providers will complete most of the administration for you, but in most cases they won’t provide any legal advice.

Services typically offered by these online companies include:

- checking of the legal forms

- provision of registered agents in the state you choose to incorporate your business in

- name availability checks

- filing and delivery of the documentation

So what are the benefits of incorporating online?

Firstly simplicity! You can complete the process sat at your computer, with online step by step, screen by screen guidance and advice.

You can literally complete the process in minutes, regardless of which state you choose to actually incorporate in. Simply fill in the online forms and hit the submit button, and let the online provider do the rest.

Most online incorporation services can handle incorporation in any state and know exactly what information each individual state requires. They know how long the process will take by state, the different incorporation fees that will be charged and the specific details each state needs.

The incorporation process becomes much simpler when you use an online service.

Another obvious benefit of incorporating online is money. It will usually be less expensive to incorporate online. Online services should be cheaper than hiring agents or lawyers to process the documentation and forms for you. Web forms and the automation the internet provides, saves on administrative overheads.

Providing the incorporation of your business is straight forward, incorporating online will save you money over the traditional incorporation methods.

Melissa Gordon asked:


Right now, the United States’ economy is struggling a little bit. Okay, it’s struggling a lot. Businesses, both large and small, are feeling the crunch. Most business owners are just trying to keep their business afloat, much less pursue dreams for growth.

But just because the economy is doing strange things doesn’t mean that it has to dictate the progress of your business. Now is a great time to do the things you’ve always wanted to accomplish in your business. And if incorporating your business is the next step for you, there’s no need to put it off because of economic challenges.

Many business owners wouldn’t dream of investing in incorporation fees at a time like this. After all, incorporating a business costs thousands of dollars, right? Wrong. With the ability to incorporate online, the cost of incorporating your business is more affordable than ever. Your incorporation dreams could be just around the corner.

For many years, the only way to incorporate your business was through an attorney. Attorney’s fees can accumulate quickly, meaning the incorporation process could very well cost thousands of dollars. However, online incorporation services cost, on average, only a few hundred dollars. Businesses have the opportunity to choose from any entity they like, depending on what’s best for their business. Incorporation services have made corporations a possibility for any business owner, no matter how small.

But in this economy, even a few hundred dollars seems unmanageable for many business owners. Every cent counts. However, it’s important to see the big picture when it comes to incorporating online.

When you incorporate your business, you get more than the fancy “Inc.” after your business’s name. So much more comes with the title that will ultimately put money in your pocket.

Corporations, as opposed to sole proprietorships, are eligible for tax breaks and benefits that can be very helpful in a time of struggle. In a sole proprietorship, a business owner could be required to pay substantially more in taxes. Corporations are entitled to write-offs, tax breaks, and other perks that far outweigh the investment of incorporating online.

Corporations also provide protection for the business owners and their families. In these uncertain times, business owners need to protect their personal assets should crisis strike in their business. Incorporating your business separates your personal assets from business assets.

Ultimately, the financial benefits of a corporation far outweigh fees and cost associated with incorporating your business. If you incorporate online, you’ll not only save thousands in tax breaks and write-offs, but you’ll also save thousands in incorporation fees. It’s small potatoes compared to how much you could save this year alone.

It can be difficult to justify investing in a business that’s suffering from economic downturn. However, this is the time to focus on moving forward in a way that suggests that your business will still be thriving long after these challenging economic times are behind us. Incorporate online to get the most out of your business this year and look forward to future success.

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

Melissa Gordon is the publisher of LegalBuffet.com, a complete online resource that compares the legal services offered by various online companies. Find the best company for you and incorporate online at http://legalbuffet.com/incorporation-services/.

Ramapati Singhania asked:


Incorporation of a business is a process by virtue of which a new legal entity emerges. This entity is known as a ‘Company’ or a ‘Corporation’. A ‘Company’ is abbreviated as Co. and an ‘Incorporation’ as Inc. Incorporation procedures can be different depending on the applicable company laws in the jurisdiction in which you are incorporating your business. An offshore incorporation for a zero seychelles tax, an offshore company administration mauritius, or a bvi offshore registration would have there own rules too.

A corporation can take many forms after the incorporation of a business; some of these are listed below:

* Business

* Non profit organization

* Sports club

* A corporation owned by government

* Foreign corporation

* Public corporation

* A registration offshore company

There are several entities and individuals who provide businesses and individuals with resources for incorporation incorporation information and services.

These firms, corporations and individuals are well versed with the applicable laws and regulations in their area of operation and are familiar with the various nuances. So they can help you in your task for not only the incorporation of a business but also determining which type is best suited for you.

So before you go forward, contact an appropriate professional and hire his/her services to guide you through the process and assist you in deciding the type of corporation which suits your needs best.

These entities and individuals are termed as incorporation agents or company incorporation agents.

They can guide you through the process of incorporation, complete all the relevant documentation, get the documentation attested by required officials or embassies, file the documents with the regulatory authorities and report to you when the incorporation procedures are complete in all aspects.

Their work does not end when the incorporation of your company is complete. They can provide you with services even after the incorporation of your business.

They can arrange the first meeting of members and shareholders which is sometimes refereed to as the statutory meeting and can also arrange subsequent meetings, file various returns with the authorities if necessary, maintain records, send notices, settle litigation and claims and help you avoid penalties and fines in the ordinary course of business.

The rapid growth and strengthening in the communications network worldwide and the provision of internet services to a large number of businessmen and individuals around the world, professional firms, corporations and individuals engaged in practicing company law and providing services of incorporation of a business have ensured that they have an adequate presence on the internet.

Many business incorporation online services have been launched worldwide which has made business incorporation online an arena where thousands of competitors from all over the world compete to give better online incorporation services at very competitive prices. But be wary. Many times you get only what you pay for!

Increasingly, the formation of an online offshore company is literally a few clicks away.

All you need to do is fill in your personal information and the incorporation on line service provider does all the work from filing the required documents to obtaining permits and holding statutory meetings and filing statutory reports.

So when you look at incorporation of a business, also check and delve into the world of incorporation offshore and see how it saves your wealth.

Holly Crosgrey asked:


When incorporating a small business in any country, state, province or other jurisdiction there will be a special procedure in that jurisdiction.

The basic principles of incorporating a small business are choosing a name, obtaining a name search, filling out articles of incorporation or a memorandum of association, notice of directors and notice of registered office.  You should also set up a minute book for the company which involves organizing the company subsequent to the incorporation.

Great consideration should be given to the name that you choose when incorporating a small business. You must ensure this name is not similar, does not sound the same as or is remotely the same as any other corporation, business name, sole proprietorship, partnership or trade-mark registered in that country, state or province as the case may be. It is not enough that the name is available. It can still be considered a conflict. Some governments will accept a name that is only different than others already registered which may not be enough to determine whether the name could be a conflict in the future. If it turns out to be a conflict you may be forced to change the name which will be very costly regardless of the fact that your government allowed you to incorporate the name. Using a qualified search house to assist you with obtaining your name search report will cut down the chance of this happening since they are trained. You need to check with the jurisdiction in which you wish to incorporate and see if they have guidelines that can be followed. In Canada for instance it is best to have a search house assist you since they are trained to know which names would be a conflict. Sometimes even if a name sounds the same it could be a conflict, such as using the words “1st” or “First”.

You will be required to provide a Name Search Report when incorporating a small business. You should obtain your name search in advance since if you register online or in person, you will be required to provide the report number or a copy of the report as the case may be before you will be able to incorporate.

If you do not wish to go through the procedure of obtaining an alpha name for your company you can register a numbered company in most jurisdictions. In Canada for instance you can register a company with names such as 2019977 Ontario Inc., 2019977 Alberta Ltd., or even 2019977 Canada Inc. Many people when incorporating a small business will register a numbered company and then register a business name against the company, i.e. 2019977 Canada Inc. c/o as John’s Hardware Store.

Each government will have its own form of articles of incorporation or memorandum of association. Each government has a section on its website which outlines the requirements for incorporation and the forms to be completed. In most cases you can download these forms, fill them in and print them off. Frequently additional forms are required to be completed as well including a Notice of Directors and/or a Notice of Registered Office either at the time of incorporation or within so many days after incorporation. When you register online the government will request the registration number associated with the name search report you ordered.

Some governments will allow you when incorporating a small business  to register a company with articles of incorporation that are not correct. The governments look for specific information to be contained in the articles. When incorporating a small business you could still be filing deficient articles and later on you may have to amend them when a government agency or another matter comes to light. It is a good idea to either hire a solicitor to register your business or buy some type of incorporation kit to assist you. It’s not difficult. You just need to understand the clauses that should be contained in the articles for them to be complete.

An example of where someone could go wrong is when they are incorporating a small business and they provide for only one director on the articles. In some jurisdictions you must show a floating board of say 1 to 10 in order to change the number of directors easily and if you do not do so and you want to bring on another director later on then you will need to amend the articles and this can be costly. Again, it is a simple change but if you do not know the fine details then you will make a mistake which could cost you in the future.

When incorporating a small business you will be required to provide the name of the company, the registered office address (which is the address where government mail can be sent), the names of the directors and their addresses (these must be physical addresses where the directors can be located in person), the nature of business (which should in most cases be left blank to enable any business to be carried on), the share attributes (which in most cases would be an unlimited number of common shares), the attributes for the shares (which in most cases can be not applicable if only one class of shares is shown), the transfer restrictions (which should be upon approval of the directors and shareholders) and the special provisions (which provide that shares cannot be sold to the public and the number of shareholders will be less than 50).

Incorporations are governed by the business corporation statutes in the various jurisdictions. For instance in Ontario, Canada it is called the Business Corporations Act. In Ontario Section 105 of the statute provides that a director of a corporation (a) must be at least 18, (b) of sound mind, and (c) a person, (d) not bankrupt. Each jurisdiction will have similar requirements for someone to be a director of a company.

As soon as you have incorporated, you must then set up your minute book.  This is the part that many small business owners do not bother to do and it is very important. Once you are incorporated you will need to appoint the officers, approve the form of share certificate, allot the shares to the shareholder and the shareholder has to pay for the shares, and elect the permanent directors. If you do not do this and you are the owner of the company and something happens to you, there will be no record of you being the shareholder and therefore the ownership of the company comes into question. As well, if you decide to sell your company down the road and you have no minute book, then you will have to pay to have one set up before you can sell and this will be much more costly than if you had done it in the first place. Your minute book can be a binder rather than an expensive minute book.

Incorporating a small business, small business incorporating, incorporating small business, incorporating a business

Wayne Hemrick asked:


Sole proprietors often start small businesses and watch them grow over time. Sole proprietorship is the easiest type of business entity to form, but there is one major drawback. Sole proprietors face unlimited liability if their business is sued. In other words, they stand to lose all of their personal assets if someone sues their business. In order to protect yourself from this, it can make sense to consider incorporating your business. There are many good answers to the question “why incorporate:” your personal assets are protected from business losses, you may enjoy some tax benefits, and you will have more credibility with banks and others with the seal of incorporation behind your company name. When you need to learn how to incorporate business, you may find it helpful to turn to online incorporation services, who can answer all of your questions concerning incorporating your business.

When you decide it is time to “Incorporate my business,” online incorporation services have done all of the homework in terms of researching each state’s business laws, and can advise you how to make sure your business is in compliance with all that apply. You will also need to decide if you want to conduct business in your home state, or if you would like a wider business reach and operate in several states. You will need to get business licenses and permits in each state, and pay the appropriate fees in order to do so. This is when an online incorporating service can help you wade through the paperwork, and make sure that all of your bases are covered in each state.

When incorporating, business owners will also need to determine how much paperwork they want to undertake in order to run their businesses. LLCs, for instance, do not require annual meetings and minutes, yet other forms of incorporation do. You must follow appropriate procedures to hire employees, and this will require filling out the paperwork to obtain an employer identification number. Some corporations require a board of directors and stockholders, all of which require much more routine business recordkeeping to stay in compliance with state business law than does an LLC, which requires neither a board of directors nor stockholders. Some companies decide at this point of business expansion to hire a professional accountant or tax adviser, and this is a factor that you would want an online incorporation service to offer advice on.

When they incorporate, small business owners such as sole proprietors often switch to incorporation for the tax savings they can enjoy. As a sole proprietor, you may be liable for double taxation, including both a self-employment tax and the Federal tax rate. This is yet another reason why incorporating your business makes a lot of sense. When it comes time for incorporating, business owners can get great advice and cost-effective solutions from online incorporation services.

Wayne Hemrick asked:


The decision to incorporate a business is a smart one, and not difficult to do. Business incorporation confers many legal protections and tax advantages that are simply not available to a sole proprietor. When incorporating online, consider how doing so provides solutions to problems and issues commonly faced by small businesses; when you incorporate a business, you’ll find such solutions much more accessible.

Liability

In today’s hyper-litigious society, this one is a major issue. Despite attempts at tort reform, anyone in the U.S. can sue almost anyone else for anything, and is the most common reasons for incorporating a business.

As a sole proprietor, your personal assets and credit status are at risk, should your business incur any sort of liability. Incorporating online protects your assets and personal credit from legal action; plaintiffs and creditors can come after the business - but not you, personally. This is perhaps the best reason to incorporate a business.

Taxes

Like death, taxes are an inevitable fact of life. Business incorporation means you can enjoy many of the same tax advantages enjoyed by the big boys such as Bectel and Halliburton. Depending on how you incorporate a business - that is the kind of legal entity you choose to form - you’ll enjoy substantial relief from your tax burden as well as a great deal of flexibility as to how your business will deal with the IRS.

Residency Requirements

For those residing and operating a business in one state while incorporating a business in another, the law requires the existence of a “resident agent.” This is a person residing in the state in which you incorporate a business who represents that business and who is authorized to receive notices and other communication from that state’s agencies.

When you enlist an online consulting firm to assist you in business incorporation, this is one service that such a firm can provide easily - and is one business solution that is not always taken into consideration by those who are not familiar with how to incorporate a business.

Guidance

One of the challenges when it comes to business incorporation is navigating through the myriad forms and regulations, which are different in each state. Those consultants that can assist you to incorporate a business should be able to only do much of this (if not all of it) for you, but provide clear, simple explanations as to why and how such steps are necessary to the process of how to incorporate a business.

Why Not?

Such consultants charge a fee that is over and above that charged by the state in which your will be incorporating online. These fees vary, sometimes by quite a bit - so comparison shopping is a wise course of action.

This said, such fees are much lower than those charged by those in the legal profession. If you lack experience in legal manners and are more comfortable with outside help when it you plan to incorporate a business, you should seriously consider hiring an Internet consultant.