Incorporating Your Business?

Should you incorporate?
When you are getting ready to start a new business you may think it is neccesary to incorporate you company. There are a few reasons that may make this neccesary but many people can start their business as a sole propietorship.

There are three main reasons why you may want to consider incorporating your business...

1. If you are going to be hiring employees you can protect yourself from some liabilities by incorprating your business. Incorporating your business can not, however, protect you from personable liabilty for any damages you which are the result of your own actions.

2. Incorporating your business is also neccesary if you are going to have partners in your business. Incoporating the company will legally document the percentage of ownership for each partner and dictate the responsibilities of each one.

3. Incoporating your company will protect the name of your business from being used by someone else. Incorprating will also to prevent yourself from choosing a name that is similar to one that is already in use.
If your company name will be fairly flexable than it may be sufficient for you to merely check the current telephone directory to see if the name you are considering is in use. While this may not prevent you from having to change your business name at a later date you may want to consider wether that may be the lesser of two evils.

Incoporating the business will involve additional expences and extra paperwork. The average cost of incorporating a company is $300 in the state of Georgia and can cost much more. It will also result in more complicated tax returns without significant tax advantages to the avarage small businesses owner.

How to Incorporate
You can request a name for reservation by calling the Secretary of States Office. If the name is available you will receive a Name Reservation Certificate in the mail. You will need to complete your Articles of Incorporation and submit them with a copy of the Name Reservation Certificate and the name reservation fee, to the Secretary of States office.

You are also required to publish a public notice in your local community newspaper. Contact your local newspaper for instructions for submitting a public notice.
Requesting a name reservation certificate will reserve the name for 90 days and if you have not submitted the paperwork it will become available again without any penalty to you.