do i have to incorporate my business before doing anything?

Question

im opening my own multi-service business, offering people services that they dont have time to do themselves, like go to the dmv, things like that. do i have to make my name official by incorporating the name of my business before i give out business cards and flyers, or can i just make a name for my business, and see if it booms, and then incorporate my name.. it that legal? please help! and where can i do that anyway? how much is it? i'd rather go direct with a company that does that instead of paying additional fees.. please advise.. thanks!

Answer 1

Incorporation is really more of a tax tool but if you plan to operate under a ficticious name you will need register for a DBA business license. Otherwise you will not be able to cash checks unless they are made out to you personally. There's also the issue of sales tax and other state and local taxes. You are probably better off meeting with your local SBA (a free service) to determine the best way to start your business.

Answer 2

You are under no obligation to incorporate your business. There are several possible advantages to various types of corporations. Tax advantages, as well as protection of personal assets etc can all be difference makers. It sounds to me like the business will be very small, probably just you, or maybe yourself a few friends. Given this, I would think that incorporating at this point is not necessary. You can open a business checking account at a local bank and do what's called a DBA (doing business as) this will allow your clients to pay a COMPANY rather than a PERSON. This will give you some credibility and it's an easy process. You shouldn't need any licenses, etc. If your business grows to the point where incorporating would provide you with significant advantages, make sure that you understand ALL of the corporate options: C Corp, S corp, LLC etc. They all have strengths and weaknesses, so finding out which one makes sense for you will probably require an accountant.

Answer 3

Do you have to incorporate? NO... But you should...

In addition to tax advantages, there is a big advantage to incorporating - protecting your privacy.

If your business grows and you land some business accounts (i.e. a lawyer's office, car dealership, etc...) some of your clients may require your social security number or a business tax id number. In order to avoid having to give out your social, get a business tax id number from the IRS and get incorporated.

Watch out for inflated charges from incorporation services. The process for incorporation is usually as simple as going to your secretary of state's web site and filling out a simple form. I have incorporated several business in multiple states, and have never needed an incorporation service or attorney.

Answer 4

The primary reason to incorporate is to shield your personal assets from liability. A good place to start for more detailed information is your state or local business development office. Most states have websites set up that will give you access to all the forms you need for whichever business structure you choose.

Yes, you can establish your business under one structure (a sole proprietorship, in this case) and then incorporate later. The reverse is also true -- you could at some later date dissolve your corporation.

About the "business name" -- you can also remain a sole proprietor and do business under a different name. You'll need to file papers for doing business under a "fictitious name" and you'll need that paperwork in order to open a bank account under your business' name. Good luck!

Answer 5

Incorporating is a choice you could make. It shifts liability from you you personally to your business. You should talk to a lawyer about the benefits and drawbacks. You can always run a sole proprietorship, but would still talk to a lawyer. You need to be careful with taxes, liabilities, etc.

Answer 6

The first thing you can do is simply register your biz as DBA (Doing Business As) at your County or City offices. Later on when your biz takes off you should definitely incorporate it.

GOOD LUCK

Answer 7

No, however to take advantage of the tax breaks that come along with owning your own business....I would advise doing so.

Answer 8

except you've workers in the present day, i might want to keep myself the price and useless more advantageous workplace artwork and performance as a sole proprietorship for now. seem on your state's website for a "doing agency as" or "fictitious call" registration. you'll likely want that to open a economic corporation account, except you'll function less than your criminal call (like Joe Smith).