| If you run a growing or established small | | | | C Corporation is best suited for larger scale |
| business you may have thought about setting | | | | businesses. The S. Corporation offers less |
| up a corporate structure. Setting up a | | | | cost, and less administration, but may not |
| corporate entity may be the obvious choice | | | | offer all the bells and whistles. It is a |
| for a successful small business, but you may | | | | great entity for those trying to reduce their |
| have some reticence when it comes to taking | | | | Social Security taxation. The LLC is the |
| action. In the past incorporating a business | | | | easiest corporate structure to set up. It |
| involved a lot of paperwork, along with | | | | offers the best liability protection of all |
| extensive legal counsel. Fortunately, this | | | | of the above, without many of the headaches |
| isn't such a big hurdle this day in age. Like | | | | that come from administration. For obvious |
| a lot of things, the advent of the Internet | | | | reasons, it is recommended that you look at |
| has made incorporating easier than you may | | | | all the pros and cons of going with these |
| think. | | | | entities before deciding on your |
| | | | incorporating services. Each individual's |
| There are incorporating services available | | | | business is different, they have different |
| online that makes setting up corporate | | | | requirements. One corporate structure may be |
| structure easier than ever. The way it was | | | | great for one individual's business, though |
| done in the old days, was that if you wanted | | | | it may not be so good for another's. Once you |
| to incorporate you would go to an expensive | | | | choose between an LLC, S Corp, or C Corp the |
| attorney that specialized in incorporating. | | | | difficult part is completed. All that remains |
| They would handle all the legalities, the | | | | is finding quality incorporating services |
| paperwork, and get you incorporated. This | | | | that will get your corporate structure set |
| took care of all the necessities of | | | | up. |
| incorporating your small business. The only | | | | |
| problem is that they come at a cost, a big | | | | Naturally, if you've already set up your |
| cost. It was not unusual at all to see | | | | Corporation, or business and are at the later |
| attorneys charging tens of thousands of | | | | stages of business, the importance of |
| dollars for these types of services. | | | | succession planning, should be stressed. It's |
| Fortunately, it doesn't have to be that way, | | | | not at all unusual for the savviest of |
| thanks to many online incorporating services. | | | | business owners to spend a career building |
| These services provide you with all the | | | | great businesses. What's equally not at all |
| necessary paperwork and filings that needs to | | | | unusual is for those very same owners not to |
| be completed, in order to setup your | | | | practice appropriate succession planning. For |
| corporate structure. Essentially, | | | | many, succession planning is a simple process |
| incorporating is just a matter of filling out | | | | of choosing or finding someone to replace |
| the correct forms. It does not take an | | | | their business. What they don't commonly |
| eight-year degree to follow simple process of | | | | think about is that there very involvement in |
| filling out necessary forms. Incorporating | | | | the business is often responsible for the |
| services do this for you. They provide you | | | | businesses success. When this is the case, |
| with the information that's necessary, and | | | | successful succession planning is a must. The |
| you fill out the forms. The advantage here, | | | | new business owner should be gradually |
| of course, is that this comes at a | | | | implemented in the business. This means |
| substantial discount to hiring an attorney. | | | | meeting all clients, understanding their |
| If you want to save even more money, there | | | | needs and quirks. This is not something that |
| are even books and software available that | | | | can be adapted overnight, it takes time. |
| will help you through the process. | | | | |
| | | | In addition to introducing new ownership |
| Following the legal methods that are required | | | | through proper succession planning, there are |
| to set up a corporation is really the | | | | other factors as well. For one, you'd like to |
| simplest step in incorporating. If you decide | | | | transfer a business with as minimal taxation |
| to finally incorporate your small business, | | | | as possible. Thus the business sales should |
| you must decide which corporate entity is | | | | be structured in a way that you'll end up |
| best suited for you. There are three popular | | | | with the most profit. This may involve |
| corporate entities, the C Corporation, the S | | | | structuring the sale via stock or other |
| Corporation, and the limited liability | | | | methods. It's not always a good idea to take |
| company or LLC. They all have particular | | | | one large lump sum. This can be true for both |
| benefits that may or may not be suited to | | | | tax purposes, as well as new ownership. |
| your business needs. A C Corporation, for | | | | Structuring a sale through a type of earn out |
| example is the most comprehensive corporate | | | | provision is often the fairest strategy for |
| structure, but it comes with its drawbacks. | | | | both the buyer and the seller. Proper |
| Because the C Corporation is the most | | | | succession planning will not only mean a |
| comprehensive, it comes with higher costs and | | | | successful sale, but a successful purchase, |
| more administration. That's why setting up a | | | | resulting in a win-win for all involved. |