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It can be expensive to try to incorporate a business. Each state has its own guidelines and fees for incorporation of organizations. Despite the cost of legally incorporating your business, however, having a legal corporation can give you access to tax breaks, greater operating freedom and the protection afforded by lawful business practices. When you are ready to incorporate your business, there are several factors to consider. |
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Becoming IncorporatedStep 1 Decide if you want to incorporate in your own state or another state. Incorporating in your state of business may be expensive. If you choose to incorporate your business in another state, you must declare your intention to operate as a foreign corporation in states different than the state you incorporate in. Step 2 Research the incorporation fees for various states. Delaware, for example, has one of the simplest, most inexpensive incorporation processes. Fees range from $25 to $1,500. Choose the state that has the most inexpensive fee for your purposes. Step 3 Download or print, fill out and return the articles of incorporation from the secretary of state in the state where you want to incorporate your business. Properly file your paperwork and return it, along with the incorporation fee. Step 4 You may begin operating your business after you conduct a required meeting to establish bylaws and appoint your board of directors. For small businesses, this may simply entail deciding who will be the president, vice president, secretary and treasurer. One person may hold multiple titles. |
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