Deciding Whether to Incorporate? The Incorporation Process
What’s Involved?
To incorporate, you pay a fee and file a document with the appropriate state agency, usually the secretary of state. (This document is often called the articles of incorporation, although the term can vary according to the type of corporation).
Keep in mind that corporate regulations, fees, taxes, and ownership rights vary widely from state to state. Many people choose to incorporate in the state where they live. On the other hand, if you will transact most of your business in another state, it may be best to incorporate there.
You also need to make sure that your corporate name is not already being used by another company in your state. Check with the same agency where you file the articles of incorporation.
If you plan to do business nationally, you may want to see if anyone else in the U.S. is using the same company name. This involves arranging for a search of all state trademark registrations and all federal registrations and pending applications in the U.S. Trademark Office. For absolute protection in the U.S., you could register your company name, logo, or slogan as a trademark.
Be warned, though, that an extensive search can cost anywhere from $500 to $1,000. "Usually I don't advise clients to do this initially," says Reid. "Trademarks are more of an issue if you plan to expand on a nationwide basis or open branch offices in other states."