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Information on Forming
Your Corporation, LLC, or Nonprofit

The Importance of Incorporation

There are a number of business structures available to business owners, such as sole proprietorship, general partnership, limited partnership, C corporation, S corporation, and limited liability company. Or if profit is not a motive, the nonprofit corporation is also available. Each of these has potential advantages and disadvantages which should be explored when deciding what structure your business should take.

Incorporation is an increasingly popular option for today's small and new business owners. There are many reasons why business owners choose to incorporate. Most importantly, incorporating helps to protect the owner's personal assets from the debts and liabilities of the business. Since corporations and limited liability companies (LLCs) are separate legal entities from their owners, the entity itself is typically responsible for its own debts.

Conversely, with sole proprietorships and general partnerships, the owner and the business are the same. Therefore, personal assets, such as the owner's house or car, may be used to satisfy business debts. Thus, limited liability is a primary advantage of incorporating.

Other Advantages of Forming a Corporation

• A corporation's existence is not dependent on its owners, therefore it has unlimited life
  
• Opportunity of gaining professional credibility with customers, vendors, employees, and partners
  
• Retirement funds and qualified retirement plans, such as 401(k), may be established more easily
  
• Ownership is typically easily transferable
  
• Capital may be raised more easily through the sale of stock

Other Advantages of Forming an LLC

• Earnings of an LLC are only taxed once, therefore allowing the benefit of pass-through taxation
  
• LLCs are free to establish any organizational structure agreed upon by the members
  

Methods of Incorporating

Forming a corporation, limited liability company, or nonprofit requires that documentation be filed with the appropriate state agency, which is typically the Secretary of State, and appropriate state filing fees be paid.

Today, there are three primary means by which you can incorporate. You can complete the filing yourself, or utilize the services of an attorney or an incorporation service provider. In deciding which is best for you, you should determine which option best suits your needs. The table below outlines some potential advantages and disadvantages of each option

BizFilings, an online incorporation service provider, understands the importance of incorporation for small business owners and entrepreneurs. Unfortunately, many business owners have misconceptions about incorporation - but it's never been easier or more affordable to incorporate than it is today.

BizFilings has two primary goals: to help educate small business owners on the incorporation process, and to continue to make the process easier without sacrificing quality.

BizFilings offers corporation, limited liability company, and nonprofit formation services in all 50 states, provides 24/7 secure access to your account online, and offers additional products and services to assist you throughout the life of your business.

Since its inception in 1996, BizFilings has provided business formation services to more than 100,000 small and start-up businesses. We recognize you have a choice in forming your business, and hope that you will consider using BizFilings.

Products and Services

Beyond offering business formation services in all 50 states, BizFilings also offers a suite of ancillary products and services, to help entrepreneurs and small businesses owners throughout the life of their businesses, including:

• Tax ID (EIN) Obtainment
  
• Tax ID (SS4) Form Preparation
  
• S Corporation Election Document Preparation and Obtainment
  
• Corporate or LLC Kit
  
• Corporate or LLC Seal
  
• Stock or Membership Certificates
  
• Corporate or LLC Forms Disk
  
• Sample Bylaws & Resolutions
  
• Registered Agent Services
  
• Compliance Management
  
• Foreign Qualification Filings
  
• Amendment Filings
  
• Other State-related Filings
  
• Certificate of Good Standing
  
• State Name Reservation
  
• Shelf Corporations
  
• Dissolution Filings
  
• Reinstatement

Discount for National Business Association Members

As a member of the National Business Association, you are entitled to receive a discount ranging from $25 to $90 on BizFilings' corporation, LLC, or nonprofit formation services in any state. Visit www.bizfilings.com/nba to learn more about this discount.