Incorporating Your Business

Incorporating Your Business

This article covers most everything that you want to know about incorporating your entity. From choosing the classes, to what kind of business you can incorporate.


Incorporating your business can lead to a world full of possibilities. When you become incorporated, your business is classed in the corporation terms, and it also means that legally it is another separate entity. This allows your company to own property as well as opens up financing opportunities for the company.

What Kind of Business Can You Incorporate?

Actually, any kind of business has the incorporating option. Of course, it has to be your business, and not someone else’s. Depending on the entity you have, you may have to have your partners help to become incorporated, but it is still very possible. Just be sure that you all follow the incorporating laws and regulations that are in your state, as they all vary from state to state.

Can I Incorporate an Older Business Entity?

You can incorporate a business entity that is older. Your business does not have to be brand new to qualify for incorporating. You will find that many business owners will run their business for a while and see just how well it will do before incorporating it at all. A business that is profitable definitely should be considered for incorporating. That will also give you what you need to grow.

Becoming Incorporated By Class

There are two classes that you can be incorporated in. There is class S, and class C. Qualifications for each class is different depending on your state laws. However, a few things appear to be the same from state to state. The biggest difference in the two classes is that class S’s profits are usually not taxed directly. The owners are responsible for paying the taxes. However, class C’s profits are taxed directly, and then taxed again when the owners claim the money they have earned. Both classes also differ in tax deductions as well.

Choosing a Corporation Name

After you have become incorporated, you will be ready to name your corporation. You will want to choose a  name that is not being used by another corporation to avoid fines and confusion. Try going to the secretary of states website to see if your corporation name has been taken all ready. This will save you time and needless worrying in the future.