Reference no: EM131660702

Question: Today, just about anybody can form a corporation for any lawful purpose in any state. The requirements differ from state to state. You do not even have to form your corporation in the state where you live or the state where you are doing business. In fact, many individuals form their corporations in the state of Delaware because it has the fewest legal restrictions on corporate formation and operation. Today, Delaware is also the state most often chosen for incorporation via the Internet, often through online companies that offer incorporation services. Finding Information on Incorporation Requirements Nearly every state has a Web site at which you can find the individual state's requirements for incorporation. (To locate your state's Web site, go to www.statelocalgov.net.) Most state sites post guidelines or instructions on forming corporations (and other business entities), fee schedules, and frequently asked questions (FAQs). Many also provide downloadable corporate forms. In addition, hundreds of companies now provide incorporation services online, and you can obtain a great deal of information at their Web sites.

For example, at the Web site of The Company Corporation (TCC) of Delaware (www. corporate.com), you can read about the advantages and costs of incorporating in your state or any other state, as well as the pros and cons of the different types of corporate entities. Similar information is available via an online seminar at the Web site of Harvard Business Services, Inc. (www.delawareinc.com). In addition, this site provides free downloadable forms and will act as the corporation's registered agent for a fixed annual fee of $50. Another useful site is that of the Corporation Service Company (CSC) (www.incspot.com/public), which has more than a hundred years' experience in forming corporations. In addition to the standard services, CSC will scan and upload documents related to any corporate transaction or litigation into an online database. This service provides centralized access to important documents for authorized users anywhere in the world and allows multiple parties to track ongoing negotiations. Incorporating Online If you wish to incorporate via an online incorporation service, all you need to do is fill out a form online. For example, if you fill out the incorporation forms at the TCC Web site, TCC will then file the forms with the appropriate state office and obtain the state's authorization of the corporation for you. You can also arrange for the online incorporation service to perform other services such as acting as registered agent for your corporation, obtaining a tax identification number, and registering a domain name for your business.

CHECKLIST OF FACTORS TO CONSIDER WHEN INCORPORATING ONLINE OR OFFLINE

1 Determine how important the state of incorporation is to your business.

2 Decide which state's incorporation requirements and restrictions best suit the needs of your business.

3 Find out not only the initial cost of incorporation but also any continuing costs, such as annual fees and possible fees for attorneys and accountants.

4 Learn what formalities are necessary and the amount of record keeping that will be required.

5 Is "do-it-yourself" online incorporation appropriate? (Depending on the nature and potential growth of your business, you may decide to contact an attorney who can take you through the necessary steps in incorporating your business.)