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Dorchester Center, MA 02124
Incorporating a business can be a complex and time-consuming process. However, with online incorporation services like Incfile, the process can be streamlined and made much easier. In this guide, we’ll take a closer look at how to use Incfile to incorporate your business.
The first step in incorporating your business with Incfile is to choose your business entity type. Incfile can help you incorporate as a C Corporation, S Corporation, Limited Liability Company (LLC), Nonprofit Corporation, or Professional Corporation.
Each entity type has its own advantages and disadvantages, so it’s important to understand the differences between them before making a decision. For example, a C Corporation offers limited liability protection for its shareholders and can issue multiple classes of stock, but it also requires more formalities and can result in double taxation. An LLC, on the other hand, offers the same limited liability protection as a C Corporation, but with fewer formalities and no double taxation.
If you’re not sure which entity type is right for your business, Incfile has a helpful Entity Type Quiz that can help you determine the best option for your specific situation.
Once you’ve decided on your entity type, the next step is to choose the state in which you want to incorporate. The state you choose will determine the laws and regulations that govern your business, so it’s important to choose wisely.
If you’re planning to do business in multiple states, you may want to consider incorporating in Delaware, which is known for having business-friendly laws and regulations. However, if your business is based in a specific state, it may be more beneficial to incorporate in that state.
After you’ve chosen your entity type and state of incorporation, it’s time to select your incorporation package. Incfile offers three different packages: Silver, Gold, and Platinum.
The Silver package is the most basic and includes the preparation and filing of your Articles of Incorporation, as well as a free Registered Agent service for one year.
The Gold package includes everything in the Silver package, plus an Operating Agreement (for LLCs) or Corporate Bylaws (for corporations), and a Federal Tax ID (EIN) number.
The Platinum package includes everything in the Gold package, plus a Business Formation Kit, which includes a personalized binder, embossed seal, and sample documents.
Once you’ve selected your incorporation package, it’s time to provide your business information. This includes your business name, address, and the names and addresses of your directors and officers (if applicable).
You’ll also need to provide information about your Registered Agent, which is a person or company designated to receive legal and tax documents on behalf of your business. Incfile offers a free Registered Agent service for the first year, after which you can either renew the service or choose a new Registered Agent.
After you’ve provided your business information, Incfile will prepare and file your Articles of Incorporation with the state. The Articles of Incorporation is a legal document that establishes your business as a corporation or LLC and includes information such as your business name, address, purpose, and the names and addresses of your directors.
Once your Articles of Incorporation are filed, you’ll receive a confirmation from the state. This confirmation serves as proof that your business has been officially incorporated.
After your business has been incorporated, you’ll need to obtain a Federal Tax ID (EIN) number. This number is used by the IRS to identify your business for tax purposes.
If you selected the Gold or Platinum package, Incfile will obtain your EIN number for you as part of the package. If you selected the Silver package, you can obtain your EIN number yourself through the IRS website.
If you incorporated as an LLC, you’ll need to create an Operating Agreement, which outlines the rights and responsibilities of your members and managers. If you incorporated as a corporation, you’ll need to create Corporate Bylaws, which outline the rules and procedures for your company’s management and operation.
If you selected the Gold or Platinum package, Incfile will provide you with a template for your Operating Agreement or Corporate Bylaws. If you selected the Silver package, you’ll need to create your own Operating Agreement or Corporate Bylaws.
After your business has been incorporated, it’s important to maintain your corporate compliance. This includes filing annual reports, holding annual meetings, and maintaining accurate records.
Incfile offers a variety of services to help you maintain your corporate compliance, including Registered Agent services, annual report filing, and document filing.
Incorporating your business with Incfile can be a relatively straightforward process. By following these eight steps, you can incorporate your business and start reaping the benefits of limited liability protection and other advantages of operating as a corporation or LLC.