If you are a small business owner, you may have considered at one time or another whether to incorporate your business or not. Sure, you are tempted by the tax advantages and risk protection that incorporating a company brings, but the costs of a traditional incorporation with an attorney can be prohibitive.

Well, times have changed, small business owner! It is time you reconsider incorporating your business because the Internet has made the whole incorporation process a lot simpler and a lot cheaper.

Incorporate a Business ... or Not?

One of the most important decisions that you will have to make as a business owner is how your company should be structured. This decision will have long-term implications so you'll want to be sure that you are well-informed when you select the type of ownership that is right for you. When making the choice, you will want to consider the following:

* Your vision of the size and nature of your business.
* The level of control you want.
* The level of structure you are comfortable with.
* The business' vulnerability to lawsuits.
* Tax implications of the various ownership structures.
* Expected profit (or loss) of the business.
* The level of investment and reinvestment of earnings into the business.
* Access to income out of the business for yourself.

Did you know - According to a 1997 report of the U.S. Census Bureau, 17 million small, non-farm businesses in the US comprised 99.7 per cent of all employers, employing 52 percent of the private workforce and approximately 51 percent of sales. Small business-oriented industries provided 11.1 million new jobs between 1994 and 1998, which was virtually all of the new jobs created during that time. As history has dictated in the past, small businesses continue to be the most likely source for generating jobs and opportunity, nearly 67 percent of first jobs and 55 percent of innovations.

Just a Click Away

You may find much of what you need to incorporate a business with just a few clicks of your mouse. For instance, many online sites now offer sample articles of incorporation forms or templates for a nominal fee. Simply go to your favorite search engine and search for “incorporation template,” “incorporation form,” or “sample articles of incorporation.” You'll find a number of choices with prices ranging from free for sample “articles of incorporation” to $50 for a customizeable template. Although the price may be right, be advised that this satisfies just one part of the process when you incorporate a business. To be sure, it does not address filing fees (how much and where to file), franchise fees, whether you need a business license, how your state treats foreign corporations, etc.

Alternatively, once you decide in what state to incorporate a business, all you need to do is visit the Secretary of State section of that state's government website. Most of these websites have sections called Corporate Bureau, Corporation Commission, Bureau of Corporations, or something similar. There you will find the forms you need for incorporating a business along with complete instructions on what is needed to incorporate a business in their state. And many states now offer online incorporation! What's easier than that?

To incorporate a business can be an overwhelming decision for many business owners, but it is often the wise one. Not only does incorporating a business provide risk protection to its owners, it also provides many tax advantages that other business structures simply do not. Nevertheless, whether to incorporate a business or not must be an informed decision so make sure you do some research on the process. You'll find much of what you need on the Internet. And, nowadays you have many more options than the traditional one using an attorney. What type of incorporation (C-corp, S-corp, LLC)? Will you use an incorporating service or do-it-yourself? Answers to these questions and more will help you choose the option that best suits your business and whether incorporating a business is right for you.