business were in operation throughout the United States in 2007 according to the Small Business Administration. According to the most recent census data published in 2005, there were 6 million firms with workers on a payroll and over 20 million business firms without. According to the small business administration there were approximately 17,000 businesses employing more than 500 workers. This represents less than 1% of the calculated 27 million businesses in the US.

Most businesses start out small. In the beginning, data uncovers that 82% of the small businesses are financed by individual loans or savings and loans from supporters and relatives. Thus, when these businesses commence to grow and thrive, private and public sector financing must become more available. The more growth the firm experiences the more the original founders begin to look for prudent ways to decrease their personal liabilities and risk in the business..

One of the first steps in starting a business is to formulate a checklist: select a business structure, pick out a tax year, select accounting method and payment of business taxes. The need for incorporation arises if the business structure chosen is either a LLC or corporation. If you choose either one of these corporate structures be prepared to file the mandatory paperwork with the appropriate state and federal agencies. If you pick out to structure your business as a sole propietorship or partnership, registration may not be required and business activites could begin immediately. The more formal your corporate structure is the more you must be prepared to invest in legal and accounting advice.

Incorporation is a fairly easy procedure, although each state demands their own specific paperwork that must be filed with the secretary of state. Filing the papers can be done by hiring the services of an incorporating agency. The primary reason why business owners would pick out to employ an incorporating agency is because of the efficency they can provide in preparing and filing the necessary paperwork. Many small business owners select to incorporate their company in Nevada or Delaware, simply because these states are considered by many to be “corporate friendly”.

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Incorporating Yourself
LLC vs Incorporation

here were 27.2 million businesses in the United States, according to Office of Advocacy estimates. Six million companies had workers and 20 million companies did not according to 2005 census data. 99 percent of the 27 million businesses employ less than 500 employees according to the most recent SBA information.

For many, the journey starts out as a small startup. Private loans or private financing are the mainstay of most small business startups. Therefore, as these companies begin to mature, it is important that easier access to finance from banks and the public is available. As these small businesses commence to grow it becomes important and advantageous for the owners to reduce their personal liability and risk.

Formulating a checklist before starting a business is usually a positive first step and it should look something like this: step one choose from the available business structures one that meets your needs, pick out a fiscal tax year, pick out an appropriate accounting method. If one chooses a “C” or “S” corporate structure or even an LLC structure, there becomes a need for incorporation. Mandatory paperwork filing comes with choosing either of these corporate structures. If you select to structure your business as a sole propietorship or partnership, registration may not be required and business activites could start immediately. In the cases of LLC and corporation, a lot of legal counsel, understanding the filing procedure, tax compliances, formation of business structure as per the type of corporation and the role of management and members are required.

To incorporate your business you will need to fill out the proper forms and submit them to the proper agencies in the state the incorporation is performed. One of the most routine ways to start the incorporation process is to contract the services of an incorporating agency. These agencies file the papers in all the states required and provide some value added services including information of fees and duration calendars that vary from state to state. Many small business owners select to incorporate their company in Nevada or Delaware, simply because these states are considered by many to be “corporate friendly”.

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Incorporate Your LLC
Form a Corp