How to Incorporate your Business in 6 easy steps

Are you looking for a way to incorporate your business without all the confusing overpriced fees? Well, the HowtoIncorporateforFree.com team has put together a guide to show you how to incorporate for FREE!!!

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By How to Incorporate Team

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Are you looking for a way to incorporate your business without all the confusing overpriced fees? Well, the Turtle Credit Team has put together a guide to show you how to incorporate for FREE!!! Now, you will still have to pay your states’ incorporation taxes and fees to the government. In this guide, we will show you how to Incorporate your Business, apply for your EIN, and open a Business Bank Account for the bare minimum.  

Establish a business address and phone number.

First, you need to establish where you will be doing business and how to contact your business. Your business address can be your residential address, so don’t have to worry about buying office space just yet. If you want to separate your business mail from your private mail or want a separate address, you can use WeWork or a UPS box. Having your business phone number will help separate your business from personal, but you can simply use your current number. You do not have to add another line to your current cell phone plan. Google voice has phone numbers for free (personal use/single lines), or you can get a business line with up to 10 users for just $10 per month.

Start LLC for $0 at IncFile

Incorporate your business.

Next, incorporate your business as a bonafide entity. That said, there are many different ways you can set up your business, and each one has its pros and cons. The base three types of business entities are sole proprietorship, partnerships, and corporations. Right now, incfile has a promotion for $0 + State Fee’s to get incorporated.
  • Sole Proprietorships are the most popular small businesses. Most Uber Drivers and Barbers are sole proprietors. If you are involved in a low-risk business or just starting, a Sole Proprietorship maybe the business entity for you.
  • Partnerships are another route to go If your business ownership has more than one individual. You have three types of partnerships General Partnership, Limited Partnership, and Limited Liability Partnership. The most significant difference between the three falls on who is held liable. In a General Partnership, all party members are held responsible for the business.  In a Limited Partnership, there is one main person who has unlimited liability.  However, in a Limited Liability Partnership, everyone has limited liability. Partnerships are usually for individuals who are just beginning.
  • Corporations have a few different corporate setups: C-Corps, S-Corps, B-Corps, and Limited Liability Corporations. When it comes to picking your corporation, ask yourself these two questions, “how risky is my business?” and “how will I be taxed?” Check with your state and local governments to make sure that you have all the right licenses in place to get your entity started.

Get an employer identification number (EIN)

The United States Government wants to get in on the action if you are operating a business in the United States.  Therefore, you will need an Employer Identification Number or “EIN.” That number is like a Social Security number for businesses.  The Federal Government uses it to track your business for tax purposes.  An EIN is an excellent way to separate your business taxes from your personal taxes and is a requirement if you incorporate your business. Obtaining an EIN is free, and you can apply for it online on the IRS website. Click here to get started.

Create your governing documents

Your business needs to create an Operating Agreement or Corporate ByLaws. They serve as formal guidelines for how your company will handle disputes, ownership percentages, losses, and profits.

These documents are essential for your company or corporation that has two or more owners. Be sure to sit down with your fellow co-owners to clarify what your organization’s bylaws or operating agreement contain. You can create these documents with your attorney or get started with this free operating agreement template.

    Pro Tip – if you need additional legal biding documents such as “Operation Agreements, Bill of Sale, Lease Agreement” Check out FormSwift.

Open a business banking account.

Now that you have your EIN and Articles of Incorporation, let’s open up your Business Banking Account. It is essential to separate your personal finances from your business finances. When tax season comes around, you will have a record of all revenue and expenses. Keeping track of your payments will help you obtain valuable tax write-offs.

Do your research when selecting a Bank that is going to meet all of your banking needs.

I like NOVO, You can open an account online in under 10 minutes. The best part is their state-of-the-art app that integrates with other small business tools such as such as QuickBooks and Stripe. Click here to check out their accounts.

Apply for a business DUNS number.

Start building your business credit by applying for your DUNS number or D-U-N-S, a proprietary system developed and managed by Dun & Bradstreet (D&B) that assigns a unique numeric identifier, referred to as a “DUNS number” to a single business entity. Dun & Bradstreet is the gold standard when it comes to business credit.  Most companies look at a business’ DUNS number to verify business credit and legitimacy. You can easily apply for a DUNS number online by clicking here.

    Pro Tip – Keep your business information current with the credit bureaus by checking your business credit at least once a week using apps like NAV. NAV is like CreditKarma for your Business.

Conclusion 

While there is no way to incorporate complete free, taking these easy steps are the closest way to incorporate for free. Starting a company is a completable task that can be started today! Thank you for reading.

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Articles: Business Finance