Business Incorporation Attorney Alexandria VA

Business Incorporation Attorney Alexandria VA

All You Need to Know About Business Incorporation

Business incorporation is the legal process of forming a corporation—a distinct legal entity separate from its owners.

Why do Businesses Incorporate?

Whether incorporation is right for you depends on the specific situation. But let’s focus on the benefit:

  • Limitations on Personal Liability—corporate shareholder, are typically not personally liable for corporate debt and lawsuit
  • Easy to transfer ownership because incorporation is usually easily transferrable
  • Tax Benefits—law considers corporations as a separate taxpaying entity that may be eligible for increased deduction and reduced self-employment taxes.
  • Continuity of Existence—corporation doesn’t end with death or incapacity of a shareholder
  • Credit Score—corporations build their credit rating and accumulate their credit score using corporate credit.
  • Centralized Management—After forming a corporation, the immediate task is the formation of a board of directors to ensures clear management structures

What are the Types of Corporations Available?

There are multiple corporations types which include:

  • For-profit corporations
  • Non-profit corporation
  • Private corporation
  • Professional corporation
  • S corporation

People associate the term corporations with sizeable multinational companies. However, that’s wrong because small businesses can also incorporate it.

How to Incorporate a Business?

Different states have different specific incorporation laws and procedures. However, there are the musts of business incorporation that cut across all states.

Here is a step-by-step guide of incorporating a business:

  • Create Article of Incorporation

Article of incorporation typically establish a corporation’s existence

  • Create Corporate Bylaws

Not all state requires a small business to draft corporate bylaws to incorporate. However, it is best practice to document a corporation’s policies and procedures and help with corporate compliance.

  • Pay Fee and File Paperwork at Secretary of State

Lastly, you will need to be aware of the fee and other paperwork your state requires for incorporation.

Do you need a Business Incorporation Lawyer?

Whether you’re incorporating a small business from scratch or purchasing an existing one, it is crucial you contact a business lawyer for advice.

Incorporation laws vary from state to state, making it difficult to understand. And it will require you to follow a specific procedure after incorporation to maintain your corporate status.

A skilled business lawyer can help you understand your state’s procedure, incorporate your business, and ensure your business compliance in the years that follows.