Timing is everything. The best time to incorporate your business.

Maryann Lawrence, Startup Rep, Direct Incorporation

The short answer to the best time to incorporate? Immediately. Incorporating your business generally protects your personal assets should there be a lawsuit filed against your business. It also can offer tax benefits, such as substantiating tax deductions for a wide variety of operating costs, and it enhances your image as a business owner.

If your business is already up and running, forming a corporation immediately might make the most sense. In addition, you can potentially save money by forming a corporation before the year’s end.

If your business is not yet operating, you could wait until the following year when your business begins operations. This might defer some of the costs and filing work until you are completely ready to pull the trigger.

However, incorporating sooner, rather than later, is usually the best strategy. This way, once you’re ready to launch your business, you’ll be ready to go with your company name, EIN, bank account, etc…

Also, waiting too long to incorporate could prove risky because you could lose the name you would like for your new business. In addition, it is a bit time consuming, and so the quicker you get started, the easier it will be on you once your business ramps up.

How long will it take to incorporate?

It only takes about 10 minutes to complete an online application. Once this is complete, it depends on your state. For example, Alabama takes four to six weeks, while Alaska takes only 15 to 20 business days. Colorado and Hawaii offer incorporation services in about four business days, while California can take up to 12 weeks.

Do you have questions about incorporating your business? Please leave a comment below and I will try to answer them. Thanks! – Maryann

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Service Rep at Direct Incorporation

6 thoughts on “Timing is everything. The best time to incorporate your business.”

  1. Greetings I stumbled on your site by mistake when i searched Google for this subject, I need to point out your website is really helpful I also seriously like the design, it is superb!

    1. Thanks @Alethea. We appreciate your kind comment! Please let us know if we can assist you with incorporating your business, logo design or website hosting and design.

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