Today we have a guest post from one of partners, The Company Corporation.

Incorporating or forming an LLC is a fast, affordable and easy process. It benefits the business owner by protecting personal and family assets from the risks and debts of the business. Here are eight easy things business owners can do to make incorporating a breeze.

1.    Select Your Company Name

Your company name can identify the type of products/services your business provides, or it can simply tout the name of the founder. The two main requirements for a company name are: no other entity in the same state may have the same or similar name; the name must include an ending like company, incorporated, corporation, association, foundation, institute, fund, society, union, syndicate, or limited. Words like “bank”, “trust” or “education” may not be used without approval from the appropriate state agency.

2.    Select Your Business Structure

A general corporation, also known as a “C” corporation, is the most common corporate structure. It may have an unlimited number of stockholders. A “close” corporation is appropriate only for the individual starting a company alone or with a small number of people. An LLC is not a corporation, but it offers many of the same advantages, combining the limited liability protection of a corporation with the “pass through”" taxation of a sole proprietorship or partnership.

3.    Select Your State

Many business owners incorporate or form an LLC in the state where they are planning to operate because it is often least complicated and most cost effective. However, Delaware still holds appeal for new companies because of its low incorporation fees, low annual franchise taxes, and lack of state income tax for corporations operating outside of Delaware. Likewise, Nevada has become increasingly business-friendly with its advantageous tax advantages.

4.    Select Your Management Team

Naming initial directors for your corporation is straightforward. Directors are typically the key players or owners in the business. In most states, only one director is required and you may simply name yourself. In an LLC, managers or members are selected.

5.    Select Your Number of Stock Shares and Par Value

Stock represents ownership in a corporation. Par value is the minimum selling price for each share of stock. Many states allow you to elect a $0 par value, to give you the most flexibility. LLCs do not issue stock, so LLC ownership is like a partnership.

6.    Choose a Corporate Kit

A Corporate Kit will help you organize and save your important company documents. They often include a corporate seal, stock certificates, stock transfer ledger, and sample forms for bylaws and minutes.

7.    Designate a Registered Agent

The Registered Agent serves a critical purpose and is an important part of protecting your corporate status. Select a highly reliable company to serve in this role. Look for a company that maintains a nationwide network of offices and serves as a full time Registered Agent in all 50 states plus District of Columbia, so that they can service your company’s needs as you grow.

8.    Worry Not!

Your decisions about company formation may be changed after your company is formed, simply by filing an amendment. Broad flexibility is available to you as your company grows and its needs change.

John Meyer from The Company Corporation will be our guest at this month’s Back to the Fundamentals webinar, April 14th.

Make sure you register for this event soon. Space is limited.

The New York Times had an article last week about how laid-off workers are taking matters into their own hands. The article talks about when, in a recession, do people start thinking about starting a company vs. just sending out resumes and trying to get a job:

Economists say that when the economy takes a dive, it is common for people to turn to their inner entrepreneur to try to make their own work. But they say that it takes months for that mentality to sink in, and that this is about the time in the economic cycle when it really starts to happen — when the formerly employed realize that traditional job searches are not working, and that they are running out of time and money.

I know there are a lot of people in this boat right now – laid off for a few months, no prospects in sight, and money is starting to run out. If you find yourself in this situation, why not think about starting a new company? What do you have to lose? Think about what skills you bring to the table, what you are REALLY good at, and figure out what services or potential products you can offer to people. It’s better than sitting around waiting for something to happen to you. Funny how people say that the harder they work, the luckier they get!

Food for thought!

Sabrina Parsons aka Mommy CEO