Incorporating your business is a big decision. The structure of your new corporation will be a big factor in your future success, so it’s important to get it set up right. Define your goals and make sure you understand your reasons for incorporating, and then meet with an accountant to determine the best way to organize your corporation. Learning about your options early on will help you make better informed decisions, and avoid potential headaches down the road.
The Incorporation Process
The first step is to choose an accountant and set up a meeting. This can cost $75 – $150, depending on the accountant. Your accountant can explain the differences between C & S corporations and LLC. Your questions about stockholders, officers and directors, can be answered by your accountant. You will need to choose three names for your corporation and list them in 1, 2, 3 order of preference. Finalize your plans and make sure you understand everything before you continue.
Second is the application to incorporate. This can be done by an attorney, costing between $800 and $1200, or you can do it online for $550. Make your choice of “on line” or an “attorney” when you have all your information ready. The three names you choose for your new corporation are now sent to the state for them to make a search to see which name is available for you to use, they start with your number one choice. If your number one choice is not available, your next choice is searched.
Once your corporation name is approved, you’ll need to apply for a Federal ID Number, State Unemployment number, and Sales Tax number if necessary. Your first Corporation meeting and Minutes will have to take place. All of these typically involve an additional fee, from $35 each for Federal and State applications, to $100 for Corporation Minutes.
How We Can Help
At Boerman Tax Accounting & Payroll, we meet with each client to answer their questions and help you find the best structure for your new corporation. We will provide the information you need to make informed decisions.
We ask what you want from your corporation.
We won’t try to fit you into a pre-packaged plan or one-size-fits-all solution. We want you to set up your corporation in the way that’s best for your business.
We explain your options and weigh the pros and cons.
There’s more than one type of corporation to choose from. We show you how each one works, and what the differences between them would mean for your business.
We show you the tax savings.
A proper corporate structure saves you money. We’ll give you the actual numbers on how your choices could affect the income tax you pay.
If you choose an attorney, you will need an accountant. If you apply on line, you will need an accountant. We will provide the accountant meeting, set up your Corporate Minutes, and apply for your State Unemployment, Sales Tax, and Federal ID Numbers. Our cost is $125.