If you are considering incorporating your business, finding out what types of legal structures exist is a wise idea. Understanding the different kinds of legal entities will help you decide which type of entity is right for your new company. Once you have chosen the right kind of legal entity, you can then file for online incorporation with the help of an online filing service. The most popular types of legal entities are:

• Sole Proprietorship: this type of legal structure does not make any kind of legal separation between you (as a business owner) and your business. While the costs associated with arranging a sole proprietorship are low, you will be held personally responsible for any company liabilities, debts, or obligations. You could wind up losing all personal assets due to a lawsuit or bankruptcy.

• Limited Liability Partnership: each partner who is part of an LLP business has a separate legal responsibility. The advantages of this legal structure include limited liability and a one-time tax fee. The main disadvantage to this type of structuring is that all partners are still held personally liable for company liabilities, debts, or obligations.

• General Partnership: when many different people want to own a stake in an unincorporated company, this is called a “general partnership.” As with a sole proprietorship, a general partnership structure does not include any separation between the business and those individuals who own the business. The main thing to consider when thinking about a general partnership is the fact that all partners are responsible for the actions of other partners. Should your partner make a bad business decision, you are also legally responsible for that bad decision.

• C- Corporation: this type of structuring allows for a clear separation between the business and those who own the business. When a C-Corporation is formed, shareholders are not personally responsible for business transactions and company liabilities, debts, or obligations of the company. While a good option, a C-Corporation can be very expensive to maintain and might not be the most tax-efficient entity choice.

• S- Corporation: as with a C-Corporation, shareholders who have a stake in an S-Corporation are not personally liable for company liabilities, debts, or obligations. Those who are part of an S-Corporation are only taxed once, though various administrative costs apply to this type of structuring. S-Corporations are popular entity choices.

• Limited Liability Corporation (LLC): an LLC is often considered the best of both worlds, since owners of an LLC are only taxed once while not being held personally liable for any business obligations that may arise. The main disadvantage of an LLC is that this type of company is subject to high administrative, set-up, and general business costs. Certain types of owners don’t like to own an interest in LLC’s, such as a venture capital fund.

Spend time learning about which type of legal structure is right for your business. If you are unsure of the type of structuring that will work best for your company, speak with an attorney. Attorneys will be able to provide you with all the information that you need in order to properly structure your new venture.

What you need to know about incorporating a business in Georgia

When you decide to incorporate your businesses in the State of Georgia, you will need to designate a registered agent located within the state. A registered agent can be an individual or corporation with a physical address within the state, which is responsible for receiving your corporation’s legal documents. Registered agents can be lawyers, service companies, or increasingly, third party registered agent services (www.FilingsMadeEasy.com/registered-agent-service). Third party services can help your company complete the necessary articles of incorporation, which are detailed below.

Specific Requirements for incorporating a Business in Georgia:

Registering a Name: You must register a name for your business, which is not already in use by another company. This may be done by going to http://www.georgiacorporations.org and the fee is $25.

Initial Annual Registration: A corporation must submit an initial annual registration form within 90 days of incorporation and include the names of all principal officers.

Corporations need to include:

• - The name of the corporation;
• - The total number of shares the corporation is authorized to issue;
• - The registered agent’s name and street address in the State of Georgia, (P.O. Box not acceptable);
• - The names and addresses of the incorporator or incorporators; and
• - The initial address of the corporation, this may be a P.O. Box.

Publication: In addition, corporations formed in the State of Georgia are required to satisfy the state-imposed “publication” requirements.  Filings Made Easy can assist you in complying with this requirement.  www.FilingsMadeEasy.com.

Press Release

Filings Made Easy Sponsors Business Competition at Babson College (click below to read press release — October 2009)

http://www3.babson.edu/newsroom/releases/BizPlanComp10-16-09ns.cf

The last ten years have taught many of us that the unexpected can, and will, happen.  It would be naive of us to think that all bad things are behind us and that the sky will be blue for the foreseeable future.  How many businesses failed because their operating plans and budgets only assumed hockey-stick like growth?  Business owners and managers need to have contingency plans (in the last two years, they have been called survival plans — meaning, all the steps that will be taken if the worst possible thing(s) happened to the business, the market or the economy).  Many businesses that survive an economic meltdown or other unforeseen challenge often thrive in the long term.

When you plan for your business, have a second plan, which you will follow if the unexpected happens and “survival” suddenly becomes your short-term goal.  Being prepared for the unexpected could put you at a competitive advantage if others in your industry do not take the same preparatory steps.  Furthermore, developing a plan when not in the middle of a catastrophe often will be more clear and better develped, than one created when in the middle of a crisis.

How many predicted the economic troubles we have faced since 2008?  Not many, but many were prepared for the unexpected and quickly took steps to ensure the survivability of their businesses, and these businesses then had opportunities in the recovery that competitors may not have had.

If you ever tried to obtain a credit card, a mortgage loan to buy a home or a car loan, then you know how important it is to have good, personal credit. It may be just as important to establish credit for your business.  Strong business credit is important to help obtain business loans, better insurance premiums or for obtaining a lease.

You may wish to start this process by incorporating your business or forming an LLC, obtaining a federal tax identification number (FEIN), and then applying for a D-U-N-S number from D&B.  Once you start to establish your corporate credit, like your personal credit score, it is important to monitor and maintain your company’s credit score.

Ever hear the saying “don’t sweat the small stuff?”  Sure, sweating every detail is not healthy and could lead to big problems.  That said, some “small stuff” (i.e., details) are important to sweat over.  The services we provide are not complex, but we understand “consequences” — yes, small mistakes can lead to severe consequences.

When we work with a client, we understand that the smallest mistake can lead to dire consequences to our clients.  In 2009, a major US company was slapped with a default judgment for over $1 billion (yes, billion) because it did not show up to court in a lawsuit in which it was named as a defendant. 

Why did it not show up to defend itself?  Easy answer — it did not know it was being sued because its registered agent failed to provide the legal documents about the lawsuit. 

These are the things we ensure do not happen with our clients.  Small mistakes result in BIG consequences, and we take our duties very seriously.

As your business grows and expands to additional states, it will likely be necessary to qualify your company to transact business as a foreign corporation or LLC in the additional states.  As you expand to additional states, it is important to consider using a commercial service for your registered agent needs.  You will likely come across a form that says that you need a registered agent, or it will ask for the name of your registered agent and you will question if you need a registered agent or if you can provide the services yourself.  While there are many companies or individuals providing registered agent services, consider the importance of working with a national service to protect your business.  The consequences of choosing the wrong registered agent can be devastating to your business if you are sued and your registered agent does not follow through properly in performing its duties.  Filings Made Easy provides national services and can help with your filing needs, all while keeping billing simple and ensuring that you are protected where you transact business. 

We know the importance of the services we provide — we sweat the small stuff and ensure that we do all that is possible to protect your business when  it comes to registered agent services.  We charge $125 per year — orders can be placed at www.FilingsMadeEasy.com/registered-agent-service or 888-237-3410.  Also, do not hesitate to contact us with any questions.

In October 2009, Filings Made Easy was a sponsor and judge for a business competition held at Babson College in Wellesley, MA.  The contestants included undergraduate and MBA students from Babson College and other colleges and universities that place high value on their entrepreneurial programs. 

A key highlight of this competition was the business presented by Megan Shea — RetireLife (www.RetireLife.net).  RetireLife is receiving great attention in the Boston area, and Megan is doing big things, including recently received recognition and publicity by BusinessWeek.

Babson College is developing great ideas and well-prepared entrepreneurs.  They are the next generation of business leaders.  http://www3.babson.edu/newsroom/releases/BizPlanComp10-16-09ns.cfm

Nevada law-makers are actively working to make Nevada the most attractive place in the U.S. for incorporation of businesses.  Nevada provides entrepreneurs with attractive features that are not available in other states.  These include:

-         no corporate income tax

-         no taxes on stock

-         no franchise tax

-         no state personal income tax

-         minimal corporate annual fees

-         no inheritance or gift tax

-         Nevada’s business court, which is modeled on the Delaware Chancery Court.  This allows for:

• Prompt resolution of business disputes
• Priority for hearings of business disputes
• Sophisticated business judges

Of course.  At Filings Made Easy, purchasing registered (resident) agent services online is fast and easy.  At www.FilingsMadeEasy.com/registered-agent-service.com, you can purchase registered agent services in all 50 states, plus Washington, DC.  The three step process will only take you a few minutes to complete, and then you can expand your business into a new state, into three states, or throughout the entire country.  It takes the same amount of time to purchase registered agent services for a single state as it does in multiple states.