Online Incorporation

Congratulations on taking that big step by deciding to incorporate your business. So now you may be asking yourself what’s the best way to do it? The fastest, and possibly the best way, is to get it done via online incorporation but unfortunately, not all states are set up to submit paperwork online.  There are services that will do the legwork for you, for a fee, so ultimately it is up to you to choose which state to go with.

Let’s come back to the state of incorporation as a business does not have to incorporate in the state that it is based in which is especially a good idea for larger businesses with transactions around the US. Once you’ve chosen your state and corporate status, go ahead and choose your agent as there are registered agents in all states who will, for a fee, list themselves for you. The internet has added a whole new level of service for agents by giving them the flexibility to allow you to fill out your incorporation papers online.  A reputable registered agent will, upon receipt of your payment and paperwork, finish the work for you.

Keep in mind that a state will require a registered agent in order to incorporate as they are your legal representative.  So if someone were to sue your business, they have to serve your registered agent in that state. They cannot legally serve you papers in the state where the business physically exists and in the event that your business has legal action taken against it, you will have to hire a lawyer to represent you in that state. This can be a particular drawback of online incorporation in another state.

Don’t let this fact stop you from considering a different state than your own for incorporation. There are many benefits to be had for corporations established outside your home state, for example, there are almost one million businesses that have used Delaware’s system because of its advantages. Half of all NYSE traded businesses and 60% of all Fortune 500 corporations are incorporated in Delaware because no income tax is charged.  The Chancery courts are also highly experienced with business matters so if this sounds good to you, you’re most certainly going to find a registered agent who will do the incorporation online.