Month: June 2016

Today, I had the pleasure of speaking with Caitlin Phillips, who recently incorporated Ann Arbor Real Estate Associates through Direct Incorporation. From the moment I walked into her office, I could tell why she was a successful real estate agent. She was so personable and open, and it was clear that she truly loved her job. She welcomed me in and we sat down to chat about her experience with Direct Incorporation, but first, she told me a little bit about herself.

Caitlin has been a real estate agent for years, but until earlier this year, she had never worked for herself. She wanted to incorporate on her own, but she wasn’t sure where to start. When she found Direct Incorporation, she said that the process could not have been easier.

“The [Direct Incorporation] website made it very easy for us to figure out how we should take our incorporation status, and which one would be best to fit our needs,” she told me. She then expanded on how Direct Incorporation’s ability to figure out whether her business name was available for use, so quickly and confidently, “was very important.”

“And then it was very easy because we could just finalize the process in the same transaction time…just in one sitting,” she continued, highlighting that our representatives were “personal, professional, and incredibly responsive.” She said that it was important to her that she was able to talk to a real person, rather than dealing with a recorded voice or computer, so that she could ask all the questions that she needed and get a quick, personal response.

“It’s very important that we have a firm that we can trust with all of our incorporation needs as we grow and expand. Having that kind of trust in that staff to take us through the process is really comforting.”

It was wonderful meeting with Caitlin, and if you ever need a real estate agent in Ann Arbor, I would highly recommend stopping by her office!

If you’re thinking about starting a new business, but are wondering where you should file your Articles of Incorporation, here are some ideas to help you figure out what to do:

The Delaware Option

Thousands of startup companies choose to incorporate in Delaware each year, due to its low incorporation and franchise fees. Companies don’t actually have to operate in the state that they file their incorporation in, and incorporated companies that conduct business outside of Delaware aren’t required to pay Delaware’s state income tax. Also, legislation in Delaware allows for corporations with less than 30 shareholders to be managed directly by those shareholders.

Yet Delaware incorporation is the most beneficial to larger companies that intend to offer their shares to the public, and for this reason the majority of Fortune 500 companies and those in the NYSE are incorporated in Delaware.

If you incorporate in Delaware but operate in another state, you may have to go through additional processes to qualify to do business in your state of operation. You may also have to file annual reports and franchise taxes in both Delaware and your state of operation.

Also, if you incorporate but do not operate in Delaware, you will need to designate a resident agent with a physical street address in Delaware. The resident agent is someone designated to receive important legal and other documents on the company’s behalf, and is a legal requirement.

The Nevada Option

Nevada’s favorable corporate laws have made it an increasingly popular state of incorporation in recent year. Nevada has no corporate profit tax, personal income tax, or franchise tax. Nevada also has minimal reporting and disclosure requirements, such as not requiring shareholders to be listed publicly.

However, like the Delaware incorporation, it is larger corporations that have the most to gain from incorporating in Nevada. If you incorporate in Nevada and operate in another state, you again may have to qualify to do business in that other state, and deal with the reporting requirements of both states.

Your State

Incorporating in your home state or state of operation is the least costly and least complicated. Unlike in other cases, you won’t have to qualify to do business in your home state as a “foreign corporation,” or file annual reports and pay income and franchise tax in multiple states.

Also, when incorporating in your state of operation,  you or someone closely associated with your company can serve as your company’s resident agent, which ensures that you will personally receive important documents with no extra time, money, or extra communication required.

Happy Incorporating!

 

It’s time for shorts and sunscreen, barbecues and bonfires. School’s out, the sun’s out, and it’s the perfect time to do what you’ve been wishing you could do for the past nine months. The past nine years, maybe. That amazing business idea, that company you’d love to start. Maybe you’re unsure where to begin, or maybe you know exactly what you’re doing but haven’t set aside the time to do it. The summer tends to be the least busy time of year here at Direct Incorporation, but here are five reasons you should start making moves to incorporate your business before fall:

1. Less time processing your paperwork

The amount of time an individual state takes to process your Articles of Incorporation can vary widely depending on factors like the time of year, the state of the economy, and the particular state’s backlog and staffing. January through April is the busiest time of the year for processing incorporation applications at many Secretary of State offices, and so taking advantage of the less busy summer months is a good way to lower your wait time, which can be up to 40-60 days when filed during the busiest months.

2. You give yourself more wiggle room

Incorporating doesn’t always go smoothly–you could run into any number of roadblocks, such as issues leasing property, working out the perfect website, or just finalizing your business plan. Giving yourself extra time to work out the kinks is far less stressful than trying to finish everything at once.

3. Meeting with the necessary people

It’s likely you’ll have an easier time scheduling any necessary meetings–whether you’re discussing a business plan with your partner(s), meeting with investors, searching for talent, or meeting with a brand consultant, it’s likely you’ll both be able to find some free time in your schedule to meet up.

4. People have more time to listen

Summer is full of opportunities to spread awareness of your upcoming business. People are out and about, and word-of-mouth marketing is not to be overlooked. Alternately, people have more time to be active on social media, and so using the summer to pop up on Facebook, Twitter, Instagram, and more is imperative.

5. Ready for the holidays

If you incorporate now, you’ll be ready to tackle the busiest part of the year as an already established business. Once fall starts, numbers 1 through 4 just aren’t the same. Besides, it’s more likely that you’ll be stressed out too, and that’s the last thing you want when you’re getting your business off its feet.

It’s summertime, and it’s time to get started. You don’t even have to put down your lemonade.