Having a personal corporation to process all of your business dealings is prudent and can potentially help save on taxes. Anybody can form a corporation in a few simple steps by simply filing the required paperwork and filing fees. Most personal corporations are structured as Subchapter S corporations because they allow all income to "pass through" to share holders and don't receive double taxation as C corporations.
Decide what state you'd like to incorporate in. Many business owners incorporate in their home state but more incorporate in corporate-havens such as Delaware, South Dakota, or Nevada.
Choose your corporate name. Your corporation cannot infringe on existing corporate names in the state you choose to be incorporated in.
Draw up your articles of incorporation. An attorney can draft this document for you, or you can purchase one online from a legal-form vendor.
Get an EIN number from the IRS. EIN numbers are like social security numbers for businesses and can be claimed online from IRS.gov.
File your articles of incorporation in the state you choose to incorporate in, and pay your filing fee.
Work closely with your CPA or attorney during this process—he can provide valuable advice in structuring your business.
- Work closely with your CPA or attorney during this process---he can provide valuable advice in structuring your business.
Kelcey Lehrich has been writing for several online media outlets for the past few years. His work can be found on Electronista.com, Macnn.com and LeftLaneNews.com. Lehrich holds a bachelor's degree from Cleveland State University in business administration and finance.