Incorporating or Forming an LLC for the First Time?

Posted by American Ltd on Jul 17, 2019 9:28:48 AM

Answers to Your Questions

Incorporating or forming an LLC for the first time American Incorporators Questions Answers business formation

The incorporation process can seem confusing and scary to a first time entrepreneur. What to name your venture, where to incorporate, and whether to form an LLC or corporation are just a few of the many questions that arise before you even begin the process. However, incorporating does not have to be intimidating. 

In reality, assuming you have taken the time to consider and evaluate all of your options, it should be a relatively quick and painless process. On the other hand, putting off this process can have dire consequences; from making it hard to open a bank account, to leaving your personal assets open to a liability suit, to limiting your access to investors. So don’t delay – please continue reading to find out how easy and painless the process can be!

Choosing a Name:

There are numerous places to learn about naming your entity – with everything from name reservations to trademark searches.  Read more about the process: 5 Tips on Naming a Business

LLC or Corporation?:

Likewise there are numerous sites and articles devoted to explaining the differences between LLCs and Corporations: Comparing Entities 

If you have further questions about which entity type is best for your venture we encourage you to consult an attorney or accountant.

Where Do I Incorporate?:

Similarly there are many factors that go into determining if you should form your company in your home state or in one of the so called “special formation stated” like Delaware where pro-business courts and practices attract thousands of new businesses annually. For information on what makes Delaware distinctive please read: Where Do I Incorporate?

 

This article is designed to de-mystify the actual company formation process once all of the above decisions have been made. Once you know where you want to form, what you want to form, and what you want to call your company, you are ready to start the process. In order to do this you have three main options – enlist the help of a professional accountant or lawyer, use a company formation service company or file directly on your own. There are clear advantages and disadvantages to each approach, but we will focus on the advantages of using a formation service company like American Incorporators Ltd. As a service company with extensive relationships in all 50 states, American Incorporators is able to form your company quickly and inexpensively (using a lawyer or accountant will often cost a lot more money, while doing it yourself will tend to take a lot longer).

What You Need to Do:

All you will need to do is answer a few questions related to the nature of your business. Requirements vary slightly depending on the jurisdiction (state) where you are forming, but in general you will need to know the names of your members or directors, your business address and purpose, how many shares of stock you want to issue (only for corporations), and who you want to appoint as registered agents (this can almost always be provided by the person or company forming the company for you).

A corporate service provider like American Incorporators will prepare all of the necessary paperwork, file it with the relevant state authorities and follow up to make sure your business is properly recorded. Depending on the state (and the amount you are willing to spend for expediting in certain jurisdictions) this process can take anywhere from a few hours to several weeks. In most instances you will have your paperwork back and your company officially listed within a week. Once completed, you will receive a filed certificate of incorporation (or formation) that you can use to prove you are a legitimately established business. Other steps that should be taken at this stage include obtaining and Employer Identification Number (the business equivalent of a Social Security Number) and creating your operating agreement.

Your EIN allows you to hire and pay employees and is usually needed to open a bank account. The operating agreement sets the by-laws for how your entity will be run and helps you to begin the process of establishing the corporate veil that protects your assets. For more explanation on what that means please see: What is the Corporate Veil and How Can it be Protected?

Corporate service providers like American Incorporators regularly obtain EINs for their clients as part of the formation process – saving you valuable time and energy. They also can provide Corporate Kits which will include templates for Operating Agreements and many other important documents you may need in your business life.

incorporate answers first time business formation American Incorporators

Once you have all of these documents back you are ready to begin your official business life – working with clients and other businesses, reaching out to potential investors and realizing your entrepreneurial dreams! And in most cases it can be completed in a very short time for a very reasonable amount of money! So don’t hesitate to take this important step to get on your way, incorporate today

 

Find the answers to all of your major incorporation questions in our new eBook

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Topics: incorporation process, how to start a business, forming a business, easy incorporation, create a corporation

Why Do I need a Registered Agent & Address?

Posted by American Ltd on Apr 5, 2019 10:55:00 AM

The Importance of Having a Registered Agent and Address 

76132042The first and most important reason that your business needs a registered agent and registered address is that it is required by law.  The state in which you choose to incorporate your business in will not approve the initial incorporation/ formation certificate without providing a valid registered agent and registered address.  

The registered agent and address must be located in the state of incorporation or formation and must be a physical street address.  The registered address cannot be a post office box.  The primary responsibility of the registered agent and registered address is to accept all annual report and tax notices from the state and to accept any Service of Process on behalf of the company in the event of a lawsuit.  The registered agent must be available during normal business hours Monday – Friday to accept any Service of Process on behalf of the company.  If your corporation or LLC fails to maintain a registered agent and registered address, the state may declare the company void for noncompliance.  If a corporation or LLC is declared void or noncompliant by the state, it may lose all of the liability protections provided as an incorporated entity.

Need a registered agent and address? We can help! Click Here

 

Topics: Registered Agent, how to start a business, registered agent Delaware

Why Do I need a Registered Agent and Address?

Posted by American Ltd on Jan 12, 2016 8:30:00 AM

The Importance of Having a Registered Agent and Address 

76132042The first and most important reason that your business needs a registered agent and registered address is that it is required by law.  The state in which you choose to incorporate your business in will not approve the initial incorporation/ formation certificate without providing a valid registered agent and registered address.  

The registered agent and address must be located in the state of incorporation or formation and must be a physical street address.  The registered address cannot be a post office box.  The primary responsibility of the registered agent and registered address is to accept all annual report and tax notices from the state and to accept any Service of Process on behalf of the company in the event of a lawsuit.  The registered agent must be available during normal business hours Monday – Friday to accept any Service of Process on behalf of the company.  If your corporation or LLC fails to maintain a registered agent and registered address, the state may declare the company void for noncompliance.  If a corporation or LLC is declared void or noncompliant by the state, it may lose all of the liability protections provided as an incorporated entity.

Need a registered agent and address? We can help! Click Here

 

Topics: Registered Agent, how to start a business, registered agent Delaware

Incorporation Process

Posted by Cory Josephs on Jul 25, 2014 9:09:00 AM

Untitled 1Incorporating your business can give you and the other owners of your business a number of benefits. For the benefits of incorporating you can look HERE. Incorporating your business can be an easy task with your friends at American Incorporators Ltd. to help you. It takes completing these simple tasks and we’ll be there to help you along the way

 

 

 

1)      To be a legal entity you must register your business name with the Secretary of State. If you have already thought of your name check it HERE to make sure it is available in your state.  If you do not already have a name, that’s okay think of a creative name for your business that will be attractive for customers.

2)      Decide what kind of entity you would like to incorporate. LLC, S Corp, C Corp and what state you would like to incorporate in. 

3)      Call Us- 800-421-2661

4)      Depending on your states regulations we could get your documentation and your business up and running in just a few days. 

 

If you want to download our "How To Incorporate a Business With American Incorporators Ltd" Guide click HERE

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Win One Free Year of Registered Agent Service

Posted by Cory Josephs on Jul 16, 2014 9:56:00 AM

free year copyFrom July 15, 2014 until July 25, 2014 for every Facebook Post you share to your friends or every Tweet you retweet to your followers you'll be entered in our contest to win one Free, yes one FREE year of registered agent service in the state of your choice up to $149. Make sure to follow @AmericanIncLTD on twitter and like American Incorporators Ltd on Facebook to stay up do date with us.

For more details about the contest click the link here: http://hub.am/1rqRPK4

Topics: Tips & Tricks, Registered Agent, Registered Agent, how to start a business, registered agents, starting a business, registered agent USA, registered agent Delaware