Incorporating online might be quick and easy, but it sacrifices most of the major benefits.
Incorporating online is an appealing way to move your business to a different classification quickly. You can save significant sums on taxes and reduce liability. As with anything, you expect incorporating online to be the faster, cheaper and easier method. Before you commit, you should consider some of the fallbacks. These are the most important things you need to know about incorporating online.
You Become Your Own Registered Agent When You Incorporate Online
For some simple companies this is fine, but if you practice outside of your resident state, this can make matters complicated. There are four general reasons you should avoid being your own registered agents:
- You don’t want your address to be public: The registered agent’s list is a matter of public record so that anyone can find you.
- You change addresses: If you anticipate changing frequently, you’ll be filing to change your agent’s address as well. A dedicated agent can keep a static office to avoid this.
- Abnormal business hours: The agent is responsible for accepting legal documents, so if you work nights or other non-standard schedules, you can miss something vital.
- State residence: If your business ever crosses state lines, then you may be responsible for being registered with both states. A professional agent can account for this with few fees and limitations.
Incorporating Online Forfeits Important Protections
Most online incorporation agencies model themselves after what you know you want, and their process is fast and easy. That’s their primary selling point. This ease comes with the caveat of being less dedicated. In general, the online filing will reduce the personalization and protection you could get from other services. There are six important forms of protection your business needs, and they are all closely tied to incorporation:
- Tax strategy: Incorporating will make your tax structure more complicated, so you want an expert who can safely and efficiently navigate it.
- Owner benefits: Incorporating is all about improving owner benefits and reducing liability. A quick and easy filing is unlikely to achieve optimization.
- Asset Protection: You already know how important this is.
- Regulatory Agencies: It’s difficult to be an expert in every regulation, so it helps to have a team that can look out for your best interests and protect you from audits, fines, and other legal restrictions.
- Planning and development: You want your business to have a chance to grow. Expert planners are your best resource.
- Exit strategies: Whether you are planning to leave soon or hand your business to your kids later, planning from the start makes the process run more smoothly.
Incorporating very well may be the best thing for your business. Take the time to do the research and consult the right experts before you take the leap. The right expert advice can make all the difference in the world, so take advantage of it before you start incorporating online. Contact us today rather than going it alone incorporating online.