Incorporating your company?
blargyblue
Posts: 0
Those who have formed their own company - is there a space to discuss legal aspects?
Is it necessary to incorporate, to register the company name, etc. and how does one do that?
We have a name in mind and tried to use an online place but stopped before completion since it seemed like they wanted a lot of fees. It didn't seem necessary to pay 'nickel and dime' for every crossed i and dotted T. In short I had a feeling we'd be paying for things that should be free...
But since I know nothing about this I didn't know for sure. It was just a hunch.
So what is the process to making your own small video came company for instance?
Thanks.
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Greetings,
This...doesn't really seem the place for this discussion, but I'll bite. I formed a Delaware Corporation some 8-ish years ago. I didn't need to, but I desired the severability between my own work and an organization that would be profiting from that work. (Specifically I was concerned about being sued by a company, and wanted to have a shield in place to protect my family.)
Most of the time you don't need to go all the way to C-Corp status. You can make do with a limited partnership or an S-corp. A lot of it depends on what your goals are, what your legal liabilities are likely to be, and how far you want to go with it.
I spent somewhere around $300 to create the company, get articles of incorporation, statement of good standing, etc., etc., from a Delaware company that specializes in being registered agents for small corporations. (There are a LOT of companies like them. I used Delaware Intercorp.)
Each year I hold board meetings (there's just me, so it's mostly a list of things the 'company' intends to do that year) and file the paperwork away.
I pay Delaware corporate taxes ($125/year) and registered agent fees ($99/year) regularly, and am filed as a 'active, non-reporting' company in my home state of Washington.
The real question you need to ask yourself is _why_ you want to form a corporation or other business entity. That'll hash out what kind you want to create.
-- Morgan
As a CEO for over 20 years, I have one piece of advice: contact an attorney in your State and do what s/he tells you. Just having Corp status will not necessarily protect the members of the Board of Directors from litigation. There are *LOTS* of variance on what is and isn't necessary between the different States. Only a qualified Attorney can answer your questions.
Kendall
Then hire a good accounting firm to keep track of all the tax nonsense.
...exactly, went into business for myself many years ago and got stung by taxes.
If I could emphasize this any more I would. Most states in the US require a license to give legal advice. Its fine for us to chat etc. and get ideas, but when it comes down to it advice you get on the internet isn't going to cut it. You need to consult a licensed attorney in your state. You should probably find someone who specializes in this type of law.
Greetings,
If I could emphasize this any more I would. Most states in the US require a license to give legal advice. Its fine for us to chat etc. and get ideas, but when it comes down to it advice you get on the internet isn't going to cut it. You need to consult a licensed attorney in your state. You should probably find someone who specializes in this type of law.This is very true.
I really hate the idea of being afraid of doing something like founding a company because of the legal details or because you don't have up-front money for a lawyer, but it's definitely a good idea to consult a professional.
You can get really far with the Nolo 'Business Formation' books, focusing on your own state, and reading VERY carefully. But the truth is that once you've figured out all you can figure out, you should still find a good lawyer and make sure that you're not missing anything. Being educated when you go in will help reduce the costs of talking to a legal professional, but you should seek that help as a safety net.
It's too easy to pierce the corporate veil if you haven't dotted every t and crossed every i. Or something like that. ;)
The original question didn't seem to touch on the tax issue, but I'll just flatly agree that a specialist small business accountant is mandatory.
-- Morgan
This. I've run or been upper management for a number of companies concurrently over the years, and the one thing that's been consistent is that what's best for one company in one state is not good for others, and what's good for one industry is not necessarily the same for others. For those in the arts and entertainment industry, this is especially true. In the case of LLCs, the rules are even more varied. One word on sole proprietorships: DON'T. In most states they offer the least protection. Finally, don't think of just one company, consider several smaller ones if you're going to provide a wide variety of services/products. That way, if one of the businesses starts to tank, you can shutter it without affecting the others. But that's just my rec based on experience. You absolutely want to contact someone who knows the state/country you live in and the general kind of business you'll be doing, or at the very least, read a few books on the subject.
I have my own business but every country and I imagine in the USA even different states have different guidelines and rules.
In the Netherlands there is a special organisation called KVK where you need to registrate.
They also profide info about law and finances.
Start with getting to know the law and see if you will be able to do your own bookkeeping or need to get an accountant.
Read about taxes, obligations and rights as a company.
In Holland there are different kinds of registrations and the way you registrate partly orchestrates on what rules apply to you.
I have very little knowledge of other countries I am affraid but one rule applies to all: gather as much info you can and be ahead if your laws!
If you're in the US I'd also recommend contacting the Small Business Administration (www.sba.gov). They're a great resource for people starting a new business and can help direct you to attorney's, accountants etc that will make sure you get started right.