Starting a Business

How Do I Get Started?

To start a business, you don’t need a corporation, LLC or nonprofit. All you need to do is sell something. Anyone can do it. Sell any product or service and then—you’re a business. It’s automatic. No paperwork or filing fees required. You just need to make a transaction.

Sell a cup of coffee at a farmer’s market—you’re a business.

Sell a loaf of bread—you’re a business.

Little kids, when they sell a glass of lemonade, technically—they’re a business.

 

Why Incorporate?

Since starting a business is actually a simple process, the obvious question is why would someone want to incorporate?

The main reason is separation.

When you sell the cup of coffee or loaf of bread at the farmer’s market, there is no legal separation between you and the business you’ve created. You are the business. This business type is known as a sole proprietorship.

In a sole proprietorship, should someone sue your business, they’ll be suing you personally. If their lawsuit is successful, they’ll get not only your business assets, but your personal assets as well. Additionally, the IRS will tax you personally on the taxable income you made by selling your products and services. This type of structure works fine for thousands of people. But if you’d like to limit your liability or find a preferred tax structure, then starting a Limited Liability Company (LLC) or corporation might be for you.

LLCs (Limited Liability Companies)

The vast majority of businesses started this year will be formed as LLCs. Why? The main reason is simplicity.

LLCs were created in 1977 as a way to blend the benefits of corporations and partnerships into an easy-to-maintain entity, giving new businesses the security of a corporation’s asset protection and the no-nonsense tax structure of a partnership. Since their conception, LLCs have become wildly popular with new businesses and are currently the most popular type of new business entity.

These are the main features of an LLC: 

  • Limited liability asset protection
  • Owners are called members
  • LLC ownership is divided into percentages
  • Pass-through taxation (income passes through to the members as personal income)
  • Easy to maintain
Learn more about LLCs

Corporations

Corporations were the original business entity and helped pave the way for business as we know it in America today.

Prior to the 20th century, corporations could only be formed by an act of congress, but through a series of supreme court decisions, the power to form a corporation was passed onto the individual. Corporations remain the entity of choice for large companies and start-ups seeking funding.

These are the main features of a corporation:

  • Limited liability asset protection
  • Owners are called shareholders
  • LLC ownership is divided into shares
  • Double taxation (corporation profits are taxed and earnings passed to shareholders are taxed again as personal income)
  • Annual shareholder meeting and corporate maintenance required
Learn more about corporations

Business Entity Overview

Asset Protection LLC Corporation Non-Profit
Limited Liability
Ownership LLC Corporation Non-Profit
Has Shareholders
Has Members
Ownership by Shares
Ownership by Percentage
Funding LLC Corporation Non-Profit
Can Sell Stock to Raise Capital
Sells Percentage of Company to Raise Capital
Investor-Preferred Entity Type
Donations
Maintenance LLC Corporation Non-Profit
State Reports Due Periodically
Requires Annual Meetings
Owners Can Make Company Decisions Quickly
Taxes LLC Corporation Non-Profit
Can Elect to be Taxed as S-Corp
Can Elect to be Taxed as C-Corp
Pass-through Taxation
Double Taxation
Possible Corporate Tax Exemptions

With Incorporate Fast, you can start an LLC or corporation in a just a few minutes.

If you already know the type of business entity (LLC, corporation, or nonprofit) you want to form, you can start and finish the formation process in 5 minutes, right now.

Why IncFast?

When you start a business, you will establish a permanent public record under your name and address by filing business formation documents. It will be a searchable public document for the rest of time. At Incorporate Fast Inc, we not only will file your paperwork faster than any other incorporation service, we’re the only incorporator that will focus on your privacy. We will not list your home or office address whenever possible. We use our own registered agent service address to be able to omit your home and office address from permanent public records. Ten years from now, you may not want your old office address a public record. We don’t even charge for this. We do it for free. A year from now, if you’d like, you or us can easily change everything from our registered agent address to your home or office, but as a solution we offer continued registered agent service for $125 a year from that point on.

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