November 28, 2007

Incorporations and Small Businesses

When I was visiting family at Thanksgiving, I got into an interesting conversation with my brother. He was telling me about a friend that started a blog two years ago, and has recently incorporated her website business. This was the first time I had heard of a blog being incorporated, and I wondered why this blog owner made the decision to incorporate. I know many small businesses will decide to incorporate or form an LLC, but a blog? My brother explained that this was done in part because her personal aim is to sell the blog at some point. Still sounded confusing to me. He also eplained to me that his friend now has to get approval of stockholders and the director, that she is no longer in sole control of this blog she started. There are regulations the corporation must follow, such as there must be regular meetings held, and minutes of each meeting need to be taken.

One of the most significant decisions that you have to make as a business person is deciding upon the structure of your business and where you are going to incorporate your firm. This decision needs to be based not merely on what you think, but on the facts, as the outcome of your business depends on it. You must set up your corporation in a state that is not only convenient location wise, but also has tax perks and other benefits as well. This will be very helpful as you will not only have the flexibility to operate your corporation in a manner that is most suited to you but you can also take advantage of the many relaxed corporate laws in the state.

nevada corporation has gained popularity over the last few years because this state has changed many of its business and taxation laws so as to attract more investment. Of late instead of Delaware being considered the corporate capital of the country, Nevada has taken over inviting business men and women from all over the country and the world to come and incorporate their businesses here. According to figures released by Nevada's state government 1995 was a record year for the state for incorporating new businesses, while of late roughly 12% of Nevada's corporations have 'foreign corporation' status. This means that 12% of corporations in Nevada are owned and operated by non-resident Nevadans.

If you are looking to get information on incorporating, you might want to check with Incparadise, a compant specializing in helping small businesses incorporate. IncParadise offers free forms online for corporations, as well as the option of having documents fully prepared for you. IncParadise also offers an online faq section that helps explain the differences between LLC and Corporations.

There are many things to consider in incorporating a small business, and if you are thinking about forming a Corporation or a Limited Liability Corporation, it is important to get as much information as possible and that you completely understand all the legalities involved.

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