Table of Contents Introduction Just What is a Corporation, Anyway? Do I Really Need to Incorporate? Types of Corporations Which Format is Best for You? The Incorporation Process: What's Involved? Should You Consult an Attorney? Okay, You're Incorporated. Now What? Treat Your Corporation Like a Business "It's A Judgement Call" Acknowledgements

Should You Consult an Attorney?

Is it possible to incorporate without hiring an attorney? Sure. Ken Jacobs incorporated TEK-WRITE three years ago through a Small Business Development Center at a local community college. Jacobs paid a (Georgia) state filing fee of $60, plus $40 to place the necessary announcement in the newspaper.

Not all communities have government centers that offer this service, but many have for-profit firms that will incorporate you for a flat fee. One such company offers a basic incorporation package for $158. If you're feeling expansive, you could try the deluxe package for $199 or create an LLC for $250. Additional options cost extra: $45 to elect "S" Corporation status, $35 to obtain a federal tax I.D. number. Other companies will let you incorporate online.

While many business owners have benefited from these services, a qualified attorney can answer questions, help you choose the right corporate format, and manage the paperwork and other administrative chores. Since attorneys specialize in many fields, select one who specializes in corporate law and who is qualified to practice in the state where you want to incorporate.

"In my opinion, you should always discuss incorporation with an attorney," says Dee. "Every state has different laws, and it's difficult for a national company to generalize about the best way to handle your individual situation."

Agrees Sumner, "I'd be cautious about 'do-it-yourself' incorporation. A corporation is a state entity, and you could be getting standardized advice that doesn't take into account favorable or unfavorable aspects of the law in your state. It's worth the money to have a lawyer look over your incorporation papers."

Reid estimates start-up costs for creating a standard "C" or "S" corporation in Missouri as roughly $500; Dee notes that some attorneys handle the incorporation process for a flat fee, usually around the same amount. Costs may vary in other states depending on attorneys' fees. Incorporation costs are fully tax deductible, although they must be amortized over a five-year period.