Easy access to the World Wide Web has made almost everything faster and more convenient – including taking care of legal matters when it’s time for your small business to incorporate online. Most small businesses will choose to form an LLC, or “limited liability company,” but this particular choice may not be right for every business. As you will see, when you decide to incorporate online, there are several different options available.
Why Form A Corporation?
Although it makes things more complicated all around, if you are self-employed and in a line of work in which liability is an issue – particularly landscaping and construction, financial services or consulting – it’s a very good idea to form an LLC, or some other kind of business entity.
The reason is protection of your personal assets. Suppose you are a sole proprietor who provides landscaping services, a nursery provided you with shrubs that turned out to be poison, and you client or one of their children or pets became very sick as a result. That client would be within his/her rights to sue for everything you own – you car, personal possessions, and even your home.
However, if you operate your business through an entity such as a Nevada limited liability company, that client could only sue the business – your own personal and real property would be considered separate by the courts and therefore “hands off.”
Online incorporation allows you to protect your own property in the event that your company incurs some kind of liability. It also protects your own personal credit should the business run into financial difficulty, as the business itself has its own credit file separate from yours. In addition, there are several tax advantages to online incorporation.
What Choices Are There?
How you decide to incorporate online depends on several factors, such as the size of the company and how much control over its operation you are willing to relinquish. The most common are:
* LLC: You can form an LLC with just one person. It is an “enduring entity,” meaning that you can legally transfer it to another party. A Nevada limited liability company has particular advantages.
* C-Corp: This is the most common type of corporate entity. This is also good to consider when incorporating in Nevada [http://www.nevadacorporateservices.com/Entity-Choices.html], but only if your company is large enough to justify it.
* S-Corp: When you incorporate online and chose this particular form, you are basically choosing to operate like a C-Corp, but electing to be taxed differently. This may be appropriate for many smaller companies that are nonetheless too large for one person to run efficiently.
Incorporating in Nevada
Nevada is one of those states that are known as “corporate havens,” and with good reason. Primarily, when you incorporate online and choose Nevada as the state of registration, you’ll pay less in fees and enjoy greater protection; in addition, a Nevada Limited Liability Corporation can be considered sufficiently capitalized at levels as low as $200.
Consider Online Incorporation Today
It is relatively easy and inexpensive to incorporate online; often, you can do it yourself. If you prefer, there are also many companies online that can assist you with the process of incorporating in Nevada.