Incorporate - Tips & Tricks

Most people who own investment real-estate, a business, or other organization should consider incorporating. There are many reasons to incorporate, but the most important one is limited liability. To have limited liability means that you will not be personally liable for the debts or obligations of the organization. For example if someone walks into your office and promptly slips on a wet floor, you may have big trouble. You may quickly find yourself in a lawsuit and lose your personal savings, home, or auto subject to claim of a lawsuit.

It may sound unthinkable and it is. But it could happen to you. What I suggest is to consult with an accountant or attorney to find out if incorporating your entity may be a wise move. Now, just because you are incorporated, doesn't mean that you will have no responsibility for the actions of your company. Don't make the mistake of thinking that you are free from all responsibiltiy. You may loose your business if you become insolvent because of a lawsuit. The limited liability protection will not protect you from this reality. But it will help you to maintain a clear separation between your business and personal assets.

So here are some tips & tricks.
1.) Form it online and you can save thousands of dollars. If you are able to ask a friend what path you need to go down, then take that knowledge online and shop for a great price.
2.) If you have a serious legal issue, or complex organization you should speak with an attorney.
3.) States like Florida, Texas, New Jersey, Colorado allow you to file online and save both time and money.
4.) You still need a local business license.
5.) You may want to file a trademark to protect your name. It is possible to have "YourName, Inc." in all 50 states.
6.) File before you need it. It can take a couple of months to complete. There are ways to expedite, but it does cost a little more.

Hopefully these tips are useful. This article is only advice and I do suggest that you speak with an attorney in your state to get the full details to appropriately protect your wealth.
Incorporate

The author is a business person in Southern California.